Ever since the "Great Ronald Reagan" started taking apart government and regulatory agencies in the early 1980's, the country has relied on the "Honesty" of business leaders and corporations to act in the best interests of the country.   BIG MISTAKE!

In an economy driven by profit and greed, corporations and businesses acted in the best interests of the executives and stockholders with an eye to making the short term quarterly stock price gains.  Massive layoffs and outsourcing American jobs translated into rising stock prices.  Business exists to make a profit and Executives seek to maximize the profits... no matter what they have to do... or who it hurts.  The Clinton years were no better, as even the democrats lost their way and sold out the country with NAFTA.  George W Bush put the final nails in our coffin by borrowing to fund his war and deregulating everything while tax cutting for the rich.


Wall Street has become a house of cards in a Casino of debt.  How is it that everyone in the US is so deeply in debt?   If you accept the idea that 2 million homeowners are defaulting on their loans and put a value of $300,000 on each defaulted loan, then for 600 billion we could have paid them all off.  End of problem!

However lenders count on getting 30 years of interest and principal payments back over 30 years.  So they sell your mortgages to institutions and count on a $700,000 return on each mortgage.   That's 1.5 trillion that they gambled on and lost.   Companies like AIG insured the packaged mortgages against loss even though they were not required to hold assets in reserve in the event of losses.  Credit default swaps were the equivalent of Joe the plumber guaranteeing 2 billion in mortgage revenue from his rented house in Ohio and on his $25,000 dollar annual salary.   If you don't have the ability to pay a loss then what good is the insurance.  AIG had no assets to back up all their policies, so the first 350 billion went to pay off their losses and it won't help the economy.  Especially if we continue to allow Credit default swaps without any rules and with private corporations as rating agencies.  Greedy men will take advantage of unregulated markets.

Companies that took the TARP money are whining that they will loose their "STAR" talent of they are forced to limit compensation to under $500,000 a year.  I would contend that the "STAR" talent is already working for the companies that are solvent and the bailed out companies do not have any "STARS" working for them.

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