Secret and Lies of the Bailout

By | January 12, 2013

Secret and Lies of the Bailout

It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?


It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.

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2 thoughts on “Secret and Lies of the Bailout

  1. james a carlin jr m d

    “things are not as they seem-milk mascarading as cream”-alice in wonderland
    people lie and cheat in order to succeed-because they think that buys them love
    well that’s the american dream-nightmare-that’s what they were taught
    doesn’t matter if it is wrong-they believe it 🙁

  2. arjay001

    Wall Street? IMO, many people believe that when the market crashes, their investment simply evaporates, gone forever in a black hole called risk. Not so, the money goes somewhere and when your shares are worthless, that investment becomes free money for someone. The bailout may be a closed case, but paid back? Do funds that fall in a catagory of uncollectable or discharged fell into the catagory of paid back? $700 billion – 100% paid back, I have to shake my head at that one.

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