President Obama has done a brilliant job for the 1%.
Under Mr. Obama’s leadership, after a tremendous, near utter collapse of the economy brought about by a corrupt finance sector, trillions of public dollars have been poured into the coffers of bankers. One recent study showed that the big banks got an annual government subsidy of $83 billion dollars a year – equal to the amount of their alleged profits. Hold onto your hats, another recent study, by Chris Whalen and endorsed by noted economist Nouriel Roubini demonstrates that the subsidy is much larger, at least $780 billion dollars a year:
$360 billion in Federal Reserve subsidies, by creating an artificial “spread” in interest rates
$120 billion in federal deposit insurance (through the FDIC, backed by the Treasury)
At least $100 billion in government-guaranteed loans, especially mortgages
At least $100 billion in monopolistic advantages in the secondary market for home mortgages
More than $100 billion in fees in the over-the-counter (OTC) derivative market. (The lack of capital required in these transactions and other special dispensations from the Fed provide the zombie banks with unlimited leverage and almost no public scrutiny.)
The first study indicates that the too big to fail banks are barely breaking even and they are getting fat and demanding on our largesse; the second study indicates that they are indeed not profitable at all. They are nothing but corporate welfare queens with a large budget to purchase politicians.
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