Published June 22, 2011
The fix is always in with the Big Banks.
The biggest fix was when they were declared "too big to fail," which guaranteed they'd get a taxpayer bailout, even though some of them deserved to fail, or at least deserved to be broken up. But since they had their hooks in with the politicians, they got the bailouts.
They always get the bailouts.
The latest bailout is Greece. Now, you hear a lot about a bailout for Greece, but it's not for Greece -- it's a bailout for the banks, the banks that gambled on Greek debt. Banks bought Greek debt because the Greek bonds offered really high interest rates. They offered high returns, because they were really risky bets, just like the subprime instruments of a few years back. And just like the subprime market, the Greek bond market turned out to be too good to be true. The returns were spectacular because the underlying product was lousy.
But instead of taking their losses, the banks are relying on their collection agencies -- the IMF and their friends in government -- to get their money back. The fix is in, again.
So taxpayers -- both here and in Greece -- are going to be paying off rich bankers who made lousy bets, again! It's the scam of all time, and no one seems to care. No one, except us, and, hopefully, you.