Washington/Wall Street: Stealing In Plain Sight

This latest outrage sets up the 99% to absorb the derivatives bets of the 1%.  Wall Street execs will still get their bonuses.  Joe Sixpack will cover all losses…just in time to cover the big banks’ derivatives exposure in Europe.  If not for a future sytem collapse and/or revolution, ALL of Joe Sixpack’s descendants will pay on this debt forever.  Be sure to thank Team Obama in November for enslaving you and also be sure to read the comments at the link.

As the Wall Street Journal reported yesterday:

Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading — not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net.

The authority for this regulatory achievement was inserted into Congress’s pending financial reform bill by then-Senator Chris Dodd.

Specifically, the law authorizes the Federal Reserve to provide “discount and borrowing privileges” to clearinghouses in emergencies…


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