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In testimony today – Federal Reserve guy Bernanke admitted in the last hour of questions, that the Stress Test is being used to determine whether the 19 – 20 mega banks are properly capitalized. Then, the Federal Reserve and the US Treasury will give them the money they need to be properly capitalized so they can survive.
Therefore, the American people have not only prevented these insolvent corporate structures from failing when TARP money and other funds were put into them, we are going to do so on a continuing basis in the immediate future.
When did the American people decide that they wanted to subsidize the people who caused the problem? Is this blackmail, where they keep coming back for more money, more money?
Does the Federal Reserve serve any other purpose beyond a slush fund for these banks and corporations at taxpayers’ expense? What kind of regulation is that?
Why are they permitted to regulate themselves and bypass the laws of the US and every sensible, prudent financial manner of doing business? How can they possibly be adequate regulating an industry they are only designed to serve?
The Federal Reserve and US Treasury are supposed to be the wisdom of the financial world, but what is wise about this? They are using their position and unlimited, synthetically-derived power (abusing their power), to snooker the American people and legislators to rob us blind, (abusing their power).
What happened to their corporate profits when they had them – weren’t they supposed to use a portion of the banks’, investment bankings’, bank holding companies’, and profits to capitalize for solvency specifically because of this kind of situation?
– cricketdiane, 02-24-09