By Henny Sender in New York
Published: August 2 2009 23:04
Wall Street banks are reaping outsized profits by trading with the Federal Reserve, raising questions about whether the central bank is driving hard enough bargains in its dealings with private sector counterparties, officials and industry executives say.
An argument can be made that Wall Street banks caused the current crisis. It is a simple fact that Fed & Treasury assistance kept them afloat through the worst of the financial crisis.
Why are they allowed to reap 'outsized profits' at our - tax-payers' - expense???
Prolonged Aid to Unemployed Is Running OutThe financial crisis caused by banks making bad loans and packaging these as fancy 'low risk' securities thereafter caused an economic crisis - lending stops, purchases stop, jobs evaporate.
By ERIK ECKHOLM
Published: August 1, 2009
Over the coming months, as many as 1.5 million jobless Americans will exhaust their unemployment insurance benefits, ending what for some has been a last bulwark against foreclosures and destitution.
... AND: while the big banks are reaping 'outsized profits' at our expense, Worker Compensation Grows by Lowest Amount On Record!
Seems to me it's time for a 'day of prayer and fasting' - a simple nation-wide general strike by the workers - white-collar and blue - to remind the geniuses of Wall Street just who it is that actually produces the goods and provides the services that drive our economy.
As I've mentioned before, I was for many years employed by a large industrial firm that in fact produced a tangible product - a product you could see, touch... hold in your hand.
The financial wizards of Wall Street? - I challenge 'em to point to their product! - it ain't there!!!
They 'manufacture' bonuses for their executives and traders, but have done a poor job performing the basic service of banking: providing $$$ to keep the economy going.
Without tax-payer generosity, they'd be failed banks.
Why shouldn't we be marching in the streets???