Within two months of moving into the White House, in March 2009, Barack Obama discovered bailout fever. Along with Treasury Secretary Timothy Geithner he tossed a $182 billion bailout to AIG, even though AIG was undergoing a criminal investigation by the SEC, and had already been fined $1.6 billion for securities fraud.
AIG made billions of dollars by helping to engineer the foreclosures on 4 million homes – but this didn’t stop Obama from bailing them out. No one missed a paycheck at AIG. No one missed their Christmas bonus. 4 million people lost their homes, and no one helped them, but the white collar criminals got a $182 bailout.
But the bailouts didn’t stop there.
Obama bailed out nearly every bank on Wall Street – even though all of them had profited from subprime mortgages, and intentionally created the mortgage crisis of 2007.
The bailout binge became so widespread, that it became a banking industry joke. Fake “bailout applications” began to circulate on Wall Street, which ridiculed the entire corrupt process.
One of these was called “Form EZ-CASH” and allowed the applicant to specify the preferred destination for their bailout funds: the Cayman Islands, the Four Seasons Spa and Resort Complex, or Bank Suisse.
In the end, nearly one trillion bailout dollars were thrown at Wall Street investment banks, brokerages and insurance companies. In other words, the white collar criminals who created the crisis received all this money. The 4 million families who lost their homes received nothing.
From 2009 until today, the bailout binge has penetrated nearly every industry in the American economy. One recent study showed as much as two trillion dollars cascading through the US financial system.
This is not a new phenomenon: nearly $220 billion was handed out in the Savings & Loan bailouts of the late 1980s.
In nearly every instance, these bailouts are rewarding large companies for their own wrongdoing. It is corporate welfare of the highest order…yet Wall Street has no problem with it, since the dirty money is flowing into their pockets.
When it comes to Puerto Rico, the song suddenly changes, and there is no bailout.
When it comes to Puerto Rico, it’s time to close 500 schools, raise water rates by 67%, triple the electricity rates, cut health plans and pensions, raise property and small business taxes, raise gasoline taxes, and charge an 11.5% sales tax.
When it comes to Puerto Rico, according to the Krueger Report, it is time to eliminate the minimum wage and re-instate child labor.
So there it is: bailouts for Wall Street, a kick in the teeth for Puerto Rico.
If that makes you angry, then think about this: the longer Obama does nothing for Puerto Rico, the greater the number of Puerto Ricans that will move to Florida.
There is a growing rumor, that the Democratic Party wants Puerto Rico to fail, so that more Puerto Ricans will move to Florida…and become Democratic voters.
Are you angry now?