Bailing out the financial aristocracy

Published on Real-World Economics Review Blog, by David Ruccio, August 26, 2011.

We’ve known all along about the TARP funds.* http://www.wisegeek.com/what-are-tarp-funds.htm
Now, thanks to Bloomberg, we know about the $1.2 trillion of public money, which is about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages, Fed Chairman Ben S. Bernanke showered on the Wall Street aristocracy … //  

… There’s no doubt about the fact Bernanke was worried that, without TARP and the emergency loans, the whole system would come tumbling down. But, of course, they acted to save the banks and not the millions of homeowners who were—and remain—underwater or the millions of workers who were—and remain–unemployed.

To paraphrase that old German philosopher, the monetary authority of the modern state is but a committee for managing the common affairs of the whole bourgeoisie. (full text).

* But we don’t know what the banks did with the funds, since there were no strings attached.

Link:

Treasury recovers nearly $900 mln in TARP money, Aug. 25, 2011.

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