The Trillion Dollar Welfare System…

food stamps

I grew up far from being wealthy. I remember shit like waiting in line for the powdered milk and cheese brick that my mom would copp from the church. My dad hated for her to get that shit but the truth was that we needed a little help when he was the only one working and my mom was finishing up her B.A. requirements. We had food stamps and a supermarket on Northern Blvd. that allowed me to use them to buy shit like bread, milk and butter.

My dad and my mother worked their natural Black asses off to put the family in a position where we no longer needed food stamps. I imagine that to be the purpose of a national welfare system. People require essential provisions to survive. As long as folks are working in a direction that will remove them from the assistance dole they should get some help. I’m surprised now (but not really) that I don’t hear any chatter from all the welfare reform politricksters about how the banking system bailout is nothing more than a trillion dollar welfare system.

I couldn’t use food stamps to pay for a fancy meal at Cipriani’s or the Russian Tea Room, so why are we allowing the banking system a do-over after they spent their money on boutique financial ponzi schemes? With no oversight or regulation there was bound to be egregious theft. We ARE capitalists aren’t we? Well, actually, they are capitalists, we, meaning the folks reading this blog are the capitalized.

Truth be told I don’t know a hotdamn thing about macroeconomics, but I thought the whole point of capitalism was always big fish eats little fish.

fishes

So now that the big fishes like AIG, Bear Stearns and Lehman Brothers have bitten off more than they can chew should we be saving them?

COMPASSIONATE CAPITALISM

I think I mentioned this term in a previous drop. I’m not recalling socialism and certainly not communism, but the idea is that the term “free market” is a misnomer that we can no longer afford to misunderstand. The market has to be monitored on some serious shit. We can’t permit entities to become so large that when they have a coronary from poor management they clot up our entire economic system.

AIG’s $13B losses in the first half of 2008 opened the floodgates for their welfare package of $85B. This is a relatively small amount considering there are corporations that have even greater global holdings that have yet to submit their ledgers from this fiscal year. Can you imagine what the amount might be to prop up a mega multi-national monolith like General Electric?

Sheeeeeeeit, cancel Christmas for the next 10 generations.

I still don’t understand how we can prevent the banking industrial complex from creating that next new vehicle to defraud poor folks from their money. How retarded on some diabolical genius shit is the concept of money anyhoo? I guess its time to get that chip put into my forehead. I don’t even give a fuck anymore. Just as long as I can get myself a package of pre-sweetened Kool-Aid and a couple of cans of sardines.

14 Responses to “The Trillion Dollar Welfare System…”

  1. Amadeo says:

    I can’t claim to have a proper understanding of it either…but I do see this: Keep the money moving…even though we won’t keep everyone healthy (for perhaps less money) we need to keep the money moving.

    “Stop smiling, be still don’t nothing move but the money.”

  2. nerditry says:

    This entire process is hopefully going to make people really angry about understanding how in the dark and dumb we’ve been kept regarding the workings of the financial system.

    Our Senators need to tell us where all of the money went in the first place. Guys making $250M per year in options and salary can’t be broke from just this, while someone is going to stay winning to the tune of nearly a trillion dollars. Where is this new trillion going to go? Specifically.

    No one outside of 2-3 very intense rooms can tell us and we should all be contacting our congressional reps to find out their position.

    George W. said it exactly right when running in 2000…he was going to be the CEO President and run this company like a business. Show me one part of the greater economy that fails to reflect current trends in banking and commerce.

    Of all the promises he made…

  3. Vee says:

    How can we prevent the banking industrial complex to stop defrauding the public?? Fight for control of your tax dollars. Drum up some noise so that laws are changed. So far this government did not help out the auto industry, nor did they help out the farmers back in the day.

    Dude, for real-for real . . . slowly but surely CHECK out of the credit system. And make sure your purchases, bills, etc. are paid for and backed by liquid cash, if you can. Just do not go into debt.

    The dollar is not backed by anything real, just your faith in it and the system. Hopefully folks are paying attention to the news because this sh*t is bigger than Hip Hop.
    Sheeeeeeeeit, it’s bigger than dallaspenn.com!! 😉

    —————— (the floodgates just continue)
    Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, said today it will pay up to 900 billion yen ($8.4 billion) for as much as a fifth of Morgan Stanley.

  4. Ernest Paniccioli says:

    Nowhere in the blah blah blah do we hear HOW MANY PEOPLE WERE SCREWED by the “SUB Prime Mess” It must have been millions of them, robbed of their dream of finally getting out of the projects or some lousy apartment. Only to go from the frying pan into the fire. Why are there no indictments, no violations of the RICO act, no warrants for multi millionaire scum suckers that lined their pockets with tons of cash and even now are laughing their balls off at the “Bush Bailout”-Ernie Paniccioli

  5. Geeflex says:

    Economics and finance education isn’t stressed in school so that when things like this happen we all just shrug and keep it moving. I did get an A in Macro AND Micro and the shit leaves me bamboozled, although it was basically fueled by over priced housing and the hype created by speculators, which was fueled by bankers who bundled, bought, and sold the debt. The bundling and transfer of debt is WILD and seems to violate something. Anyway, all these firms should be allowed to go out of business and a depression would probably wake people up.
    *sharpens tinfoil hat*

  6. ReThug talking point is to blame this on “minorities”

    Check the bitchmade propagandist moron Corporate Welfare Whore Neil Cavuto, aka Rupert Murdoch & ReThug 4th gen weed carrier
    http://mediamatters.org/items/200809190021?f=s_search

    Fockin racist X 10

    The real welfare queens are these arrogant incompetent bankers, who don’t understand Econ 101.

  7. @Geeflex,

    I read that some of these failing banks were leveraged up to 30X on these mortgage back securities. What a recipe for failure.

    To put it consumer terms, what if a similarly incompetent douche, but regular poor guy, was given a 6M loan against his 200K house.

    How was this not an obvious closter fock to everyone? Dean Baker & a few other economists/analysts called it.

    Obama should name Dean Baker & Warren Buffet for the economic positions in the cabinet.

  8. the_dallas says:

    Cavuto is definitely a monster shitbag because the truth, the absolute truth about the mortgage crisis wasn’t in the money that was lent to people through un-financed loans but to the people with 750+ credit ratings who thought they could increase their wealth quickly by purchasing property and then “flipping” it.

    Those folks assumed adjustable rate loans with the idea they would have sold the property before the adjustment ballooned and when they couldn’t sell their cribs they were stuck with properties that weren’t worth the amount of the loans they received. The banks were all busy buying up bundles of these overfinanced properties. The banks thought these people would hold the properties and complete their mortgages

    The people said fuck it and walked away from the properties. They were willing to take the seven year knock on their credit rather than paying the hundreds of thousands of dollars back to the banks.

    Where was this happening? Not in the effin’ ‘hood, but in Stockton, California. True fucking story.

  9. Geeflex says:

    died@30
    They gambled and lost and we should get to point and laugh and buy houses in our neighborhoods at non-gentrified non-speculator house prices and use the excess for college funds and community(!) investment and pull out of Iraq[II] because we can’t afford it. Instead we get Trillion Dollar Welfare to go with a Trillion Dollar Welfare. We are decade away from making sneakers and plastic toys for the Chinese.
    *uses popsicle sticks to reinforce inside of tinfoil hat*

  10. […] …is to come up with a wise plan for responding to the economic crisis we’re in.  It’s no wonder that so few people feel equipped to address the issues, though there’s a lot to the common eye that’s visibly askew. […]

  11. ready roc says:

    hahahahahaahaha peep the email they sent me.

    From: Minister of Treasury Paulson
    Sent: Tuesday, September 23, 2008 9:27am
    To: Undisclosed-recipient
    Subject: FW: Urgent Request

    Dear American:

    I need to ask you much urgent support to a secret business relationship with a transfer of funds of grate magnitute. I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of US700 billion $. If you would kindly assist to me in this transfer, it would be most profitable to you.

    I am working with Mr. Phillip Gramm, former Senator of the American States government, who will be my replacement as Ministry of the Treasury in January. As a dignitary leader, you may know him as supreme leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe!

    This is a matter of great urgent. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because of the goverment being runned by our opponence. My family lawyer advised me that I should look for a reliable and trustworthy person who will be next of kin so the funds can transferred.

    Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detail informasion about safeguards that will be established for your kindly protection.

    Yours Faithfully in SErvice,
    Minister of Treasury Henrik Paulson

  12. Riddle me this, don’t you think McCain or Obama should tell us who will be their Treasury Secretary? Just a query. I mean with almost a trillion dollars on the line.

  13. Ernest Paniccioli says:

    Again, where is the RICO statute when we need it?
    A Million men of color were locked away for decades on some crack/cocaine/war on drugs/bs tip.
    Now we need a war on pirates, thieves, aka bankers, money men.
    Sadly these low life pricks have stashed their loot in off shore banks and have shown once again they are above the law (ENRON-Whitewater, etc, etc).And the tumble has just started to foment.
    When quarter waters are going for $2.00 and Dallas can’t feed his addiction to cheap (19 cents to make sneakers) made in the depths of the 3rd world by people in virtual slavery. When Nike, Adidas, Converse etc start selling for $600.00 a pair and gasoline goes to $24.00 a gallon and Mc Deaths double grease with bacon is $18.00 then we will demand public executions of bankers, corrupt (99% of them) politicians, and others that get caught with their hands in the cookie jar. Ernie

  14. Amadeo says:

    Gramm-Leach-Bliley Act

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