WASHINGTON, Sept. 5, 2008

Greenspan: Fed Is Not A Magic "Piggy Bank"

Former Federal Reserve Chairman Worries Over Government Bailouts Of Collapsed Companies

  • Former Federal Reserve Chairman Alan Greenspan Photo

    Former Federal Reserve Chairman Alan Greenspan  (AP)

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(AP)  Troubled by the Bear Stearns debacle, former Federal Reserve Chairman Alan Greenspan is advocating a new way of dealing with government bailouts of companies whose sudden collapse could wreak havoc on the country's economic and financial stability.

Greenspan says Congress needs to give the government new powers to handle troubled companies to minimize any potential losses to American taxpayers. A self-described libertarian Republican, Greenspan has a reputation for being wary of giving the government extra powers. However, in crisis situations, there needs to be a clear process for handling bailouts, rather than depending on the Fed to do so, he reckons.

A high-level panel of financial officials should be given broad authority to quickly determine whether a failing company poses a sufficient threat to the entire U.S. economy, he recommends. If so, the company would be shut down.

"We need laws that specify and limit the conditions for bailouts - laws that authorize the Treasury to use taxpayer money to counter systemic financial breakdowns transparently and directly rather than circuitously through the central bank as was done during the blowup of Bear Stearns," Greenspan wrote in a new epilogue to the paperback edition of his memoir, "The Age of Turbulence: Adventures in a New World." (The paperback will be released Sept. 9; the hardcover came out last year.)

Greenspan envisions the formation of a group akin to the Resolution Trust Corp. to step in, take a troubled company into conservatorship, wipe out the equity, impose some charge or "haircut" on its debts before guaranteeing them and then selling its assets. The RTC was created in 1989 to deal with the aftermath of the savings and loan crisis. It disposed of the assets of failed savings and loans and then went out of business.

Costs to taxpayers would still be a concern, he acknowledges. As with the RTC, however, the public cost could be minimized, he says.

Critics in Congress, in academia and elsewhere worry that the Fed's unprecedented actions - including financial backing in March for JPMorgan Chase & Co.'s takeover of Bear Stearns Cos. - are putting taxpayers on the hook for billions of dollars of potential losses. They also say it encourages "moral hazard," that is, allowing financial companies to gamble more recklessly in the future.

Fed Chairman Ben Bernanke, who took the helm after Greenspan, has repeatedly defended the Fed's actions, saying they were necessary to avert a meltdown of the entire financial system, which would have devastated the U.S. economy.

Bernanke's Fed also has taken a number of unconventional - and some controversial - actions to shore up the shaky financial system and to get credit, the economy's lifeblood, flowing more freely. It agreed in March to let investment houses draw emergency loans directly from the central bank. And, in July, the Fed said Fannie Mae and Freddie Mac also could tap the program. For years, such lending privileges were extended only to commercial banks, which are subject to stricter regulatory supervision.

Greenspan, 82, who ran the Fed for 18 1/2 years and was the second-longest serving chief, says he is concerned that Capitol Hill will look to the Fed's actions "as a wondrous new font of seemingly costless federal funding - a magical piggy bank."

The United States has long "abandoned the notion that we should leave crises to be resolved solely by the marketplace," Greenspan says in making the case for new powers in this area.

The ex-Fed chief says he is skeptical of a sweeping plan, put forward by Treasury Secretary Henry Paulson, that would turn the Fed into a uber cop of sorts - responsible for policing financial market stability. "Much as we might wish otherwise, policymakers cannot reliably anticipate financial or economic shocks or the consequences of economic imbalances," Greenspan says.

Greenspan calls the current crisis "one of those rare, once in a century or half-century events." The full closure on this crisis is "a way off," he says. The U.S. economy, he observes, appears to be "on the brink of recession." And, worldwide inflation, he warns, is creeping, which will pose a challenge to central bankers, he says.

Looking back, Greenspan says governments and central banks probably could not have altered the course of the once high-flying housing market and broken through investors' fevered euphoria.

He believes that the government should have gone after fraudulent mortgage practices, however. "Bank regulators, who are expert in accounting, banking law and risk management, are not equipped for this job," he says. "It requires law-enforcement professionals."

Greenspan has taken much criticism for failing to crack down on dubious lending practices that eventually came to roost with the subprime meltdown and for failing to act as a forceful banking regulator. He also has been blamed for keeping interest rates too low for too long, feeding the housing bubble.

The epilogue can be purchased separately for $8 as an electronic, or "e-text," the first such release under a program from publisher Penguin Group (USA). "We know that many who read the hardcover or e-books edition ... would be interested in the new material written by Dr. Greenspan without having to buy the whole book again," says John Fagan, Penguin's marketing director for e-books.

© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Add a Comment See all 48 Comments
by jtdev1 September 5, 2008 8:13 AM PDT
It''s funny how the big 3 now are requesting 50 billion in low interest loans from our government to retool...

So I''m sure our government will loan this money at a low rate all while borrowing this money from china at a high rate and who do you think will pay the difference in the interest rate??? Exactly, you and me...


Typical business as usual in washington....


Hey Feds, I need a low interest loan too....


I say let them all fail or at least make them go directly to china and ask for a low interest loan....


Reply to this comment
by payasyougo September 5, 2008 8:22 AM PDT
"Greenspan: Fed Is Not A Magic "Piggy Bank"
----
Democrats: The federal tax system IS a magic piggy bank


Bumper sticker seen in the South:
Obama: making the rich pay your fair share.
Reply to this comment
by jtdev1 September 5, 2008 9:04 AM PDT
Democrats: The federal tax system IS a magic piggy bank

Posted by payasyougo

-----------------------

Republicans: China is the mother of all magical piggy banks....


Bumper sticker seen in the North:

Hate change? Vote McSame!







Reply to this comment
by walt1944-2009 September 5, 2008 10:18 AM PDT
One of his first acts as Great Emperor was for George W. Bush to "toughen" the bankruptcy laws, making people liable to pay back their debt instead of getting a "fresh start". At the time, he said he was "happy" to sign the bill which sailed thru the neocon Fascist Nazi Congress.

Yet, today, when a company or some outfit in Corporate America gets in trouble, the Great Emperor Bush II RUNS to have the government bail them out and give THEM a "fresh start", and all at taxpayer expense!!!

It''s obvious as to where the priorities of the Great Emperor Bush II and the neocon Fascist Nazi Republicans are at! They don''t care about the PEOPLE of this country and never will! All they care about is keeping Corporate America happy and get a slice of the pie for themselves!

SIG HEIL, BUSH!!!!!
sig heil, I''M A POW AND PROUD OF IT, McCain!!!!
sig heil, QUEEN OF THE WILD FRONTIER, Palin!!!!
Reply to this comment
by brianbwb-2009 September 5, 2008 10:36 AM PDT
"Greenspan calls the current crisis "one of those rare, once in a century or half-century events." The full closure on this crisis is "a way off," he says. The U.S. economy, he observes, appears to be "on the brink of recession." And, worldwide inflation, he warns, is creeping, which will pose a challenge to central bankers, he says."

Yeah, right, like the dot.com bubble burst, or the automaker''s meltdown, Enron, Countrywide, and the airlines. Greenspan must be joking, be are not amused, Al. Greenspan counts short centuries, even I knew knew that these practices would be disastrous in the medium to long term, but at the time, it powered Wall street upwards, making it possible for the president to point to it, and lie that the economy was strong.

Brink of recession? The economy has been contracting since 1972, the current dollar carries 19% of it''s 1972 value, and is still dropping, just one Iran war from collapse. Greenspan is full of it.
Reply to this comment
by petro49l September 5, 2008 10:49 AM PDT
The Federal Reserve Board should develop a policy of issuing loans to investment companies in crisis. It makes better sense than bankruptcy. The American People do not appreciate hand-outs to financial corporations. Those companies must pay back the money with interest.
Reply to this comment
by harp1963 September 5, 2008 11:12 AM PDT
Don''t worry Mr. Greenspan, we''ll just take all the money the entire decent hardworking "trying to make a honest living" American workforce has been paying into Social Security their entire lives, take it away from them by raising the Social Security age to a point that they are so feeble they won''t be able to have it or enjoy it, and then channel it to super wealthy bankers so they can continue their lives on the fully staffed 10,000 acre estates they currently live on.

Either way, the blessing is for the taken advantage of elderly. The Bible is full of mercy for all kinds of sins, but their isn''t much to be said in the way of mercy for the super wealthy who have taken advantage of others and caused mass suffer through their love of money and power.

There is life after death and there is a Hell. The greedmongers should review the story of Lazurus and the Rich Man before s c r e w i n g elderly people out of a savings they have paid into their entire lives. They should also take heed to a book that has travelled across some 2008 years, spread around the globe into every language, and was initially marketed by lowly individuals who road into pagan villages to be dismembered, tortured, and possibly burned alive.

If you don''t believe in Divine intervention after analyzing how the story of some obscure carpenter in some obscure town in the middle of no where in the desert grew to the proportion it is today, then you are a moron.
Reply to this comment
by whitemale08 September 5, 2008 11:24 AM PDT
Funny I didn''t hear "systemic breakdown of the U.S. economy" from our cheerleader Republican beauty queen. According to her and the Republicans, the "fundamentals of our economy are sound".

What all of our leaders should be saying including Obama, is announcing "bankruptcy reorganization of the Federal Reserve System".

But until that happens at least Obama knows that "taxes have to raised on the rich", and interest rates have to go up to shore up the "dollar".

It''s a not "sub-prime crisis", or "oil crisis", it''s a CURRENCY CRISIS and it could bring the WHOLE WORLD''S ECONOMY DOWN WITH IT!!!

There is no new "credit derivatives bubble" like the last "housing bubble" or "tech bubble" to kick-start our economy.

We have to start from scratch, go back to 1971 and 72 when Republican Nixon took us off gold standard but more importantly had gotten rid of the Bretton/Woods system of "fixed-exchange rates" that stabilized the world''s economy since the Great Depression.

Now that we don''t have a "fixed-exchange rate" system and nothing to anchor our fiat-currency like gold then we will continue to contract at an ever faster pace because our entire phony economy was like a big balloon.

We never did "grow the economy" in a real sense, our economy has contracted since 1972 under Nixon, where manufacturing/production was all to be replaced by credit debt bubble derivatives swaps nonsense and now it''s all blown up. Welcome to the New World Order Under Debt Serfdom.
Reply to this comment
by jumkey September 5, 2008 12:01 PM PDT
Magic Piggybank?

Holy krap.
Reply to this comment
by sly_64 September 5, 2008 12:07 PM PDT
Then we should not be sending billions in foreign aid when we can''t even pay for our own electric bill.

It''s like paying to fix your neighbors fence while your own roof has collapsed.
Reply to this comment
by yeswecan09 September 5, 2008 12:12 PM PDT
****Democrats: The federal tax system IS a magic piggy bank****

Republicans: Don''t worry about debt -- we will just pass it onto the next generation.
Reply to this comment
by lochlan-2009 September 5, 2008 12:14 PM PDT
We never did "grow the economy" in a real sense, our economy has contracted since 1972 under Nixon, where manufacturing/production was all to be replaced by credit debt bubble derivatives swaps nonsense and now it''''s all blown up. Welcome to the New World Order Under Debt Serfdom.

Posted by whitemale08

EXACTLY!!!! It''s only part of the story but I think Greenspan is feeling the heat from his disgrace and is trying to get some face back.
Reply to this comment
by vastr-wcon September 5, 2008 12:20 PM PDT
Greenspan: Fed Is NOT A Magic "Piggy Bank"

Bailout Bernanke and the Feckless Fed: Fed IS A Magic "Piggy Bank"

Regrettably, Bailout Bernanke is now in charge.
Reply to this comment
by wardoglrs September 5, 2008 12:42 PM PDT
%u201CWith the exception only of the period of the gold standard,all governments of history have used their exclusive power to issue money to defraud and plunder the people.%u201D - Friedrich Von Hayek


%u201CThe real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the government of the U.S. ever since the days of Andrew Jackson. History depicts Andrew Jackson as the last truly honorable and incorruptible American president.%u201D

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. Thomas Jefferson

"Paper is poverty,... it is only the ghost of money, and not money itself." Thomas Jefferson to Edward Carrington, 1788


President FDR (on Fascist rule in a letter to corporate con man %u201CColonel%u201D Edward M. House, a founder of the Council on Foreign Relations and political fixer for the ruling class. House also handled President Wilson for the foisting of the privately rigged %u201CFederal Reserve%u201D Corp bank monopoly. 11/21/ 1933)

Reply to this comment
by wardoglrs September 5, 2008 12:43 PM PDT
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

When all government, domestic and foreign, in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided of one government on another, and will become as venal and oppressive as the government from which we separated - Thomas Jefferson
Reply to this comment
by wardoglrs September 5, 2008 12:44 PM PDT
%u201CCompetition [i.e. capitalism] is a sin.%u201D
%u201CI want to own nothing and control everything.%u201D
%u201CThe ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay more for that ability than for any other under the sun.%u201D
John D. Rockefeller (Fascist cartel robber baron and promoter of the U.S. %u201CFederal Reserve%u201D Act in alliance with the Rothschild bloc. 1839-1937)
%u201CI don%u2019t care who the government is. Let me control the money and I will control the country.%u201D
Mayer Amschel Rothschild (attributed to the German godfather of the Rothschild bank cartel and grandfather to heir Lord Baron Nathaniel Mayer de Rothschild: owner of the Bank of England and a key promoter of the U.S. %u201CFederal Reserve%u201D Act. 1744-1812)

"Every citizen should be a soldier. This was the case with the Greeks and Romans, and must be that of every free state."
Thomas Jefferson

"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants."
Thomas Jefferson
Reply to this comment
by xmanborg September 5, 2008 12:46 PM PDT
Taxes are going to have to go up some time in the futrue, who is going to pay for George W Bushies spending habbits in the Middle EAST ?

Oh and by the way Republicans did you see that segment on CNN last weekend about the Swimming Pool that was Rebuilt in Bagdad at a cost of 500,000 US Tax payer dollers so the children can have a place to swim and IRAQ is sitting on 97 billion dollars of oil revenue held in US BANKS.

WHY THE FRACK did the US TAX PAYERS pay for this Frackin swimming pool when IRAQ has 97 billion sitting in US BANKS. I would like a Republican to answer that Question !

Just another Republican HAND OUT to IRAQ and the People of IRAQ so the frackin children can swim.

At the Republican convention last night there were NO BLACK PEOPLE THERE, Fyi Republicans, RICH White People with Tans dont count as Black People, there called African Americans and there were NO African Americans in the audience last night, maybe 10 and the Republicans sure kept the camara on them for an extended amount of time. It was the same Black People Over and Over and Over again they kept showing nice try to hood wink the American Public again.

Good OLD, Abe Lincoln was there last night with his top hat I am sure all you Gun Luvin, Right Wing, Fat Chubby Pizza Eatin Republicans got a chuckle out of GOOD OLDE Abe Lincoln being in the audience.

LOOK BILLY BOB Youins see that THERE IS, ABE LINCOLN standing there in the Audience and he has his top hat.


Reply to this comment
by wardoglrs September 5, 2008 12:49 PM PDT
"The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in Government." -- Thomas Jefferson

"If tyranny and oppression come to this land it will be in the guise of fighting a foreign enemy." Thomas Jefferson

"Anyone who would sacrifice freedom for security deserve neither". Ben Franklin (paraphrased)

"I would rather die with the constitution clinched in my fist, then live with shackles on my feet" Greywolf

"Arms are the only true badges of liberty. The possession of arms is the distinction of a free man from a slave."

Reply to this comment
by wardoglrs September 5, 2008 12:50 PM PDT
"The unarmed man is not just defenseless, he is also contemptible." Machiavelli

"Pick up a rifle and you change instantly from a subject to a citizen." Jeff Cooper,
The Art of The Rifle

"Only a virtuous people are capable of freedom. As nations become corrupt, they have more need of masters." Benjamin Franklin.

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." Samuel Adams.

%u201CUnfortunately, nothing will preserve [liberty] but downright force. Whenever you give up that force, you are inevitably ruined.%u201D Patrick Henry

%u201CCourage is reckoned the greatest of all virtues; because, unless a man has that virtue, he has no security for preserving any other.%u201D Samaul Johnson

%u201COne of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.%u201D Plato

%u201CThe danger is not that a particular class is unfit to govern. Every class is unfit to govern%u201D
Lord Acton.
Reply to this comment
by jsutaguy September 5, 2008 12:56 PM PDT
hmmm
Reply to this comment
by grandesign September 5, 2008 12:58 PM PDT
"A high-level panel of financial officials should be given broad authority to quickly determine whether a failing company poses a sufficient threat to the entire U.S. economy, he recommends. If so, the company would be shut down."

I completely disagree. The government should rigorously enforce anti-trust laws to prevent such vertical consolidations, and also prosecute more vigorously those companies that manipulate the ratings of bonds and other securities, and those that break accounting laws.

This whole economic mess has been created by those who have lacked the integrity to do the right things, and have cheated us into a gigantic hole.
Reply to this comment
by jsutaguy September 5, 2008 12:58 PM PDT
Of COURSE the Fed is a magic piggy bank! It can print money, based on nothing, and ''lend'' it to large, Wall Street banks who then ''lend'' it to us! Then, in order to finance that debt, they get other big countries to ''lend'' us the money and they pay them interest. Every month, you just borrow more money from other countries.

That''s the Repbulican ''small government'' approach!

Who does Greenspan think he IS trying to tell people that''s not how it works!!????

(/Sarcasm)
Reply to this comment
by grandesign September 5, 2008 1:04 PM PDT
"the Fed''s unprecedented actions - including financial backing in March for JPMorgan Chase & Co.''s takeover of Bear Stearns Cos. - are putting taxpayers on the hook for billions of dollars of potential losses."

The next thing you know, Insurance companies and mutual funds will be tapping at the Fed''s window for taxpayer money. The SEC rules and regulations are standardized, the equity vehicles are paid last, the Preferred vehicles are paid second to last, the Bonds are paid earlier then both of these, and the Government is paid tax and liens first.

Let the equity be wiped if the company fails. That''s the reason for speculation--and the taxpayers should never be responsible for it.
Reply to this comment
by grandesign September 5, 2008 1:14 PM PDT
"The ex-Fed chief says he is skeptical of a sweeping plan, put forward by Treasury Secretary Henry Paulson, that would turn the Fed into a uber cop of sorts - responsible for policing financial market stability."

It is not the Fed''s responsibility--it is the SEC''s responsibility to keep integrity, and hence stability, in the financial markets. The polices are already in place, and ignored consistently.
Reply to this comment
by jsutaguy September 5, 2008 1:15 PM PDT
There are some very rich men behind this corruption. To quote Jack Abramoff: "Washington is the land of loopholes, where the spirit of laws are broken everyday..".

Name the rich individuals who profited heavily from the corruption of the last eight years. STrip them of their money and put them in a REAL prison.

Or don''t.

Either we ARE a country which operates under the rule of law, or we are not.

Which is it going to be? The other non-wealthy non-Wall Street 95% of the country wants to know....do we obey the laws, or do we not?

This is where the corruption in Washington, and the corruption of the corporate Washington buyout is taking us.

Reply to this comment
by stn_sage September 5, 2008 1:15 PM PDT
I wish Alan Greenspan would have shown the same frank disclosure on the issues when he was head of the Fed as he does NOW that he no longer is!

Consequently, he suffers a HUGE credibility gap as far as I''m concerned! I don''t care what he has to say, he had his chance while serving under Bush, and he failed in his duties---now, he should just go AWAY!
Reply to this comment
by hypnotoad72 September 5, 2008 1:41 PM PDT
I''''m not rich and I can see why we need to NOT overtax the rich.

Posted by mnelsonix a
----

In 1952, the tax rate for the wealthy was something like 88%. These days it''s 30%. I''m hardly rich and my rate isn''t quite 30% (though if I looked at my gross income and net income lines on my check, the net amount removed is about 33%). How many more cuts do they, or the rest of us, really need?

Especially with the national debt (unless someone is going to whittle off a few flakes of gold from a bar in Fort Knox to help pay back that national debt, of course), more tax cuts are not a good idea, the US is the best country in the world to live in, and our soldiers fight and die to protect us all - including them.


Reply to this comment
by hypnotoad72 September 5, 2008 1:42 PM PDT
BTW.... If every man, woman, child, illegal immigrant, legal alien, and visitor forked over about $27,000 to the Federal Government, we could reduce the national debt to about zero.

I hope you find this comforting. lol

Posted by mnelsonix
---

Why are you Laughing Out Loud? Something amuses you?
Reply to this comment
by jmurrieta1 September 5, 2008 1:42 PM PDT
Although it''s helped a lot of rich pigs.
Reply to this comment
by antoniof123 September 5, 2008 1:45 PM PDT
If Greenspan is worried then we all should be he was one of the best despite what you clowns may think. Now we should be looking to cover ourselves thank you GOP for your lack of oversight once again.
Reply to this comment
by random_radar September 5, 2008 2:15 PM PDT
When poor people make a bad investment, the rich foreclose and repossess their property.

When rich people make a bad investment, poor people have to pay taxes to bail them out.

Thus we see how the rich get richer and the poor get poorer.

How much dumber can poor people get than to believe that politicians tax the rich? Politicians tax the poor to pay for the rich.
Reply to this comment
by freeyourcrt-2009 September 5, 2008 2:21 PM PDT
They print money on a whim and convince most people that declaring its value by fiat makes it worth something . If that''s not magic then what is?
Reply to this comment
by freeyourcrt-2009 September 5, 2008 2:22 PM PDT
They print money on a whim and convince most people that declaring its value by fiat makes it worth something . If that''s not magic then what is?
Reply to this comment
by bcadrew September 5, 2008 2:38 PM PDT
I know someone who bought a half million dollar home on stated income. The problem is he did not have any real income and he was helped in stating his income by an unscrupulous lender. The lender made a lot of money and helped this person get a second mortgage on the property so everyone got paid. However I am sure we the tax payer will be bailing both of these loans out. It is amazing that if I take a gun into a bank and rob it I go to prison, but if I wear a suit into a bank and rob it the tax payers will help me!
Reply to this comment
by hologram5 September 5, 2008 3:18 PM PDT
Give the government MORE power? What kind of crack are you smokin fool? They keep taking and taking without giving back. Give them more? I think not.
Reply to this comment
by gce65 September 5, 2008 3:38 PM PDT
The Fed certainly seems to be a magic piggy bank for Wall St firms, hedge funds and large banks who get in trouble!

Why can''t it be for the average American?
Reply to this comment
by tylenol6 September 5, 2008 3:44 PM PDT
Greenspan = NEW WORLD ORDER
Reply to this comment
by magoo2u1 September 5, 2008 3:48 PM PDT
Hey morons : You can''t collect taxes from the unemployed. Like the bank robber answered when asked why he robbed banks : "because that''s where the money is". You tax the rich because they have it. Their corporations aren''t taxed so hit them up for their fair share.
Reply to this comment
by hermitdave September 5, 2008 4:10 PM PDT
Since Alan was asleep at the switch as the housing bubble got bigger and bigger, his advice is only as good as any other crook connected to this band of criminals we call our government. Bush will do like any spoiled rich kid he will just borrow more money from his new Chinese dad.
Reply to this comment
by vechibless September 5, 2008 4:16 PM PDT

'' .. i like how people ''won''t give you the time of day'' unless you at least try to look and act like a starving slaving tortured mangled raped baked african war baby, but i do think they are being a tiny bit over zealous and cruel by leaving so many other alternatives ''out of the loop'' .. ''

Reply to this comment
by grandesign September 5, 2008 4:39 PM PDT
In 1952, the tax rate for the wealthy was something like 88%. These days it''''s 30%.
Posted by hypnotoad72 at 01:41 PM : Sep 05, 2008

Gosh, and so many Conservatives harken back to the good ''ol days of the ''50s. Maybe no one was really wealthy back then.
Reply to this comment
by wl7bzh September 5, 2008 4:52 PM PDT
If I counterfeit, I go to jail. The Fed does it, calls it deficit spending and some politician gets elected.

Gosh, I look the government''s "team player" approach to economics.
Reply to this comment
by walterburien September 5, 2008 6:28 PM PDT

LOOK FROM THE INSIDE!

The Federal Reserve''s: Annual Financial Report
See the wealth, see the Players!

http://cafr1.com/STATES/FedReserve/FR2007CAFR.pdf

Learn!
Reply to this comment
by walterburien September 5, 2008 6:30 PM PDT

LOOK FROM THE INSIDE!

The Federal Reserve''s: Annual Financial Report
See the wealth, see the Players!

http://cafr1.com/STATES/FedReserve/FR2007CAFR.pdf

Learn!
Reply to this comment
by greeneyes222 September 6, 2008 12:01 PM PDT
It''s a reasonable solution. As it stands now, these firms get the money and go on their merry way.
Reply to this comment
by hypnotoad72 September 6, 2008 12:44 PM PDT
The Fed certainly seems to be a magic piggy bank for Wall St firms, hedge funds and large banks who get in trouble!

Why can''''t it be for the average American?

Posted by gce65
----


Because we pay the most in taxes? (percentage-wise, corporations pay in the lower-30s, but there aren''t 250 million corporations in existence.)
Reply to this comment
by cfin5 September 6, 2008 3:03 PM PDT
That''s right, it''s not a magic "Piggy Bank". It''s a "FIAT" Piggy Bank. So don''t blame us for the problems that those whom you have to do with have created through covetousness.
Reply to this comment
by payasyougo September 7, 2008 10:44 AM PDT
"Like the bank robber answered when asked why he robbed banks : "because that''''s where the money is". You tax the rich because they have it."
----
I believe we''ve all just witnessed someone finally admitting to robbing the rich via taxes.
Reply to this comment
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