Wall St. To Be Bailed Out Again
October 19, 2011
By Justin "Filthy Liberal Scum" Rosario

Here we go again...

Wall St. has cooked up a whole new way to screw the American public. This time, we won’t just be bailing Wall St. out, we’ll be bailing European banks out as well! But first, a quick history:

Once upon a time, banks that took peoples’ money were not allowed to gamble on the stock market the way other financial institutions could. For instance, Bank of America would not be able to issue securities because they were a commercial bank. This was part of the Glass-Stegall Act of 1933, passed in direct response to the last time Wall St. devastated the global economy, AKA, The Great Depression.

The logic of this is impeccable: Banks take money from everyday citizens to keep their earnings safe (as opposed to hiding them under the mattress). Those banks cannot be allowed to gamble with that money and risk losing it. Prior to the Great Depression, this is exactly what they did. They gambled and gambled and gambled! And then they lost. The banks found themselves suddenly owing far more than had on hand and were forced to shut down. Those regular, everyday citizens suddenly found they had no money. It was gone, pissed away by Wall St.

So the Glass-Stegall Act was passed and the FDIC was created so that people could still put their money into a bank and be assured it wouldn’t disappear. It also made sure that banks with FDIC protection couldn’t use that protection to engage in high risk gambling.


Well, That block on gambling with peoples’ money went away when Congress overwhelmingly passed the Gramm–Leach–Bliley Act of 1999. Now the banks were free to turn Wall St. back into a casino but it would be even better this time! Now the government would have to save their bacon when their number came up. And so we got the Great Recession after the Wall St. collapse of 2008.

What does that have to do with Europe and a new round of bailouts? Simple. Because the GOP took great pains to ensure that the banks were not broken into discrete, smaller, less dangerous entities, the banks are still free to take insane risks with our money. And they certainly did. Oh, sure the new Dodd-Frank regulations are supposed to have fixed this but that didn’t stop Bank of America and JP Morgan from taking their about-to-explode European derivatives (the same derivatives the GOP would not let Obama regulate) from their vulnerable “separate” investment arm and dumping them in the nice, safe, FDIC insured commercial arm. Which means that when those derivatives collapse just like they did last time, the banks will just hold their hand out to the government under the guise of “making sure the average American doesn’t lose their savings.”

The Obama administration is questioning the legality of this move for the obvious reason that it violates the spirit of the new regulations if not the actual word (which is debatable).

This all sounds very complicated and it is, to a degree. What you need to know is that if the banks are allowed to dump their risky bets in the FDIC insured part of their operations, they will have once again forced the taxpayer to bail them out if Europe collapses and Obama may not have the legal standing to stop it.

Now you know what the Occupy Wall Street protests are about.

Read more about the impending disaster here

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http://www.addictinginfo.org/2011/10/19/wall-st-to-be-bailed-out-again/

I sure hope Obama is able to stop this from happening.

blah blah blah, blame the libs as usual....

Lets not forget it was go with the flow party boy cigar aficianado slick Willie Clinton who signed that Grahm-Leach_Bliley Act of 1999. I've posted the history of the FDIC and Roosevelts sigining of the Glass-Stegall Act a couple of times on here.

This is one of the more important topics that I see posted in these forums.