By Seth Richardson
We’ve always been left to wonder why the bailout of the Big Six banks, including JPMorgan, Bank of America, Citigroup,Wells Fargo, Goldman Sachs, and Morgan Stanley were so painless for the banks and how they were able to weather the financial tsunami that has devastated our economy and indirectly the economy of the world and instead flourish.
Turns out it’s all Ben Bernanke’s and the Federal Reserve’s fault.
A story in Tuesday’s Denver Post by Bloomberg News reporters Bob Ivry, Bradley Keoun and PHil Kuntz illuminates just how it is that these six firms avoided their natural free-market fate of bankruptcy. It was the Federal Reserve that saved them, and it was the Federal Reserve, in collusion with the Big Six, that kept taxpayers in the dark, deliberately, about how much the Big Six were getting from taxpayers. The staggering total is far, far more than the $700 billion in TARP funds. When it’s all said and done, the Big Six took 63 percent of the funds you and I will be paying for, and worse, through secrecy, chicanery and manipulation they managed not just to avoid bankruptcy, they all managed to grow substantially, collectively by some $2.5 trillion dollars, or 39 percent, between 2006 and 2011, while innocent homeowners who had never missed a payment had their homes foreclosed upon merely because local property values made their homes worth less than the balance remaining on their mortgages.
The maths are complex, and I refer you to the article for a good explanation of exactly how it happened, but the upshot is that the Big Six banks that should have been shut down by the Federal Reserve and the FDIC because they were failing and genuinely under-capitalized, were instead not just saved at public expense, but were given preeminent position in our banking economy, at the cost of many thousands of small, independent banks that were, and continue to be shut down by the government because their loan portfolios and cash capitalization are sub-par, in large part due to the machinations and malfeasance of the Big Six and the Federal Reserve itself. No bank bailouts for your local bank who, through no fault of their own now hold precarious or non-performing loans. Just arrogant FDIC auditors walking in and shutting the bank down without notice and selling its assets to a bigger bank.
I’ve said it before, and I’ll say it again: It is reasonably clear that this administration is attempting to concentrate all US banking in the Big Six and perhaps a few other interstate and international large banking networks, at the expense of local banking, in order to consolidate the Progressive-in-Chief’s power and control over the economy. The Federal Reserve is complicit in this centralization of banking because it’s the non-governmental, immune-from-scrutiny, un-audited controller of, quite literally, the entire economy of the world. When the Federal Reserve speaks, nations listen. It’s easier for the Fed and the Progressives to control a few large banks, and consequently the economy, than the tens of thousands of local banks we have in our independent banking network.
So I come to common cause with the Occupy Wall Street protesters insofar as they argue that the Big Six should be put out of business as punishment for their fiscal malfeasance, their officers (and Ben Bernanke) prosecuted for fraud and collusion, the Federal Reserve should be either disincorporated or placed under the close scrutiny and direct control of Congress and required to be fully transparent and its officers identified and held personally accountable for their actions, and that people should immediately withdraw all their money and investments from all of the Big Six and place them in their locally-owned banks and credit unions, as a way to protect our nation from the devastating evil of central banking.
Perhaps the OWS movement should change its name to “Kill the Big Six and the Fed.” With that agenda I completely agree.
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