Is Wall Street run by idiots?

The taxpayer funded bailouts of Wall Street will not be ending any time soon.  The stupidity goes on and on and on.


By Gary;

The first job your Editor had after leaving college was as a loan officer.  My bosses trained me throughly to investigate any applicant for credit to make sure they were qualified and had the ability to re-pay the loan.  If you were a screw up and made bad loans you were shown the door very rapidly.

I always wondered whatever happened to all the screw-ups that were fired.  Well, I wonder no more.  They were hired into the Wall Street banking industry, by European banks and by the Federal Reserve.

The proof is all around us.  Hundreds of billions of dollars are being funneled down rat holes around the world in phony, pretend loans that will never, ever be paid back.

Greece is not a wealthy nation.  But the so-called "best and brightest" graduates from the finest universities who run the financial system of the world thought it was a good idea to loan billions to Greece with no hope of repayment.  Now these idiots want to loan even more money to Greece . . . to get them even deeper into a debt they can never pay back . . . so they will not default on the old loan payments that they cannot afford.

THINK ABOUT IT:   You are poor and cannot afford your car payment.  The brilliant answer to this problem from the bank is to loan you even more money so you will not miss your monthly payments. 

Proof of the "quality" of an MBA from Harvard.

This insanity is going on all over the world.  In the U.S. we have Socialist feel-good programs where the government borrows or prints money it does not have in order to pay the home loans of people who can no longer afford them.

The super wealthy and the international bankers don't have to worry.  The taxpayers or the government printing presses will cover all their bad loans. 

Free enterprise?  Bad companies being allowed to fail?  Idiots getting fired for their stupidity?  That is "crazy" talk from fringe people like John Stossel or Ron Paul.

Wall Street loans $1.3 Billion to a city going bankrupt

Now we come to the newest insanity from the Wall Street bankers.  The City of Los Angeles.

The city is broke.  Period.  Even after a 13% reduction in the city workforce, spending cuts and pension reforms the city's projected budget deficit is $196,000,000 says the Los Angeles Times.

A critic of the city's fiscal outlook, former Los Angeles Mayor Richard Riordan, weighed in.  In an interview with the Bond Buyer last month, Riordan said that he thinks that Los Angeles may go bankrupt soon because of dramatic increases in employee pension and healthcare benefit costs.

Wall Street reviewed this information.  The investors then issued the city $1.3 billion in short-term loans at record low interest rates.  The city's top budget officials bargained for the good rates at meetings with investment firms and banks across the country.

L.A. is broke.  It cannot pay it's bills.  So like Greece the bankers loan money to someone who cannot afford a loan and force them deeper and deeper into debt.  The banking system is run by fools.

But don't worry.  After all, banks are too big to fail.  The politicians will always make sure that the taxpayers will foot the bill for bad business practices and bail them out. 

Socialism for the rich.  Capitalism for the rest of us.

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