Citigroup is in trouble and Washington might step in and give them more financial aid from the bailout funds. They already received $25 billion in October.
Why are we helping them and not GM? Robert Reich (Secretary of Labor under Clinton) has the answer - kind of.
So why save Citi and not GM? It's not at all clear. In fact, there may be more reason to do the reverse. GM has a far greater impact on jobs and communities. Add parts suppliers and their employees, and the number of middle-class and blue-collar jobs dependent on GM is many multiples that of Citi. And the potential social costs of GM's demise, or even major shrinkage, is much larger than Citi's -- including everything from unemployment insurance to lost tax revenues to families suddenly without health insurance to entire communities whose infrastructure and housing may become nearly worthless. I'm not arguing that GM should be bailed out; as I've noted elsewhere, GM's creditors, shareholders, executives, and workers should have to make substantial sacrifices before taxpayers should be expected to sacrifice as well.
Nonetheless, Citi is about to be bailed out while GM is allowed to languish.
It all boils down to perception. Reich says the Treasury and the Fed believe their job is to keep "the financial economy "sound", by which they mean keeping Wall Street's own investors and creditors reasonably happy."
Why, because we have a mutual enemy in those forces threatening the financial collapse of the United States.
The $700 billion financial rescue that Congress proposes will enrage us. Congress is caught between a rock and a hard spot. Just ask WHAT IS MY CONGRESSPERSON SAYING ABOUT THIS?
Our representatives want it to pass, though not with their vote after it has been trashed so relentlessly in the press as a Wall Street "bailout."
Something must pass to shield middle America from further harm caused by the mistakes of Wall Street and Washington. Harm caused in part by the Wall Street Bankers.
Working with our new friends the middle class through its elected leadership must minimize the damage and chaos financially facing this country.
But when the dust settles we must fight our new friend politically for regulations and oversight of our financial markets.
We must commit to this fight s with "most righteous" indignation and great anger.-
Good Morning Flint! By Terry Bankert 9/24/08
http://attorneybankert.com/ *****
WE HAVE A RIGHT TO KNOW
It appears our TV screen will fill with another rash of Wall Street perp walks as the FBI launches a wave of criminal investigations on our countries financial collapse. Our current economic mess caused by a collapsing housing market after a decade of soaring prices and relaxed if not downright fraudulent mortgage lending practices now has left banks with worthless mortgages causing their impending collapse.Was there fraud ,we will see, we have a right to know. Our economic ship does appear to be taking on water. How did this happen we have a right to know. Now is the time to slow down gather facts make deliberate decisions. We may be bailing out the skiff to sink the schooner. Congress must ask questions and demand answers. The cure could kill the patient. That patient is the American taxpayer the schooner sinking is the economic future of our children. As of today Wall Street has 26 open FBI investigations against it. Good for the FBI. Financial managers who lied about the condition of their company and insiders that dumped their stock before the collapse deserve prosecution, perp walks, suicides and sentences. I sorrow for their families but not for them. How far up the corporate chain of command will fraud be found. Needed is a 1 trillion dollar bailout by the US taxpayers. How could they , insiders and financial managers, not have known, not have lied and not have ,as insiders , acted wrongfully. Will a bailout help these rich and hurt us non rich. Congress do the right thing.
The rich have played Russian Roulette with our future don't join in ,think deliberatehold hearings on the bailout. Then act responsibly [trb]
