BAILOUTS AND MELTDOWNS September 30, 2011Posted by wmmbb in Humankind/Planet Earth, US Politics.
Where did all the money come from to save the financial institutions that were too big to fail? Why were they too big to fail? What was the effect of the injection of money of that magnitude on the global economy?
Al Jazeera has now put up the second part of its four part series Meltdown – the crisis that created a global financial crisis. The first part, available on You Tube, is called, “The Men who Crashed the World”:
During 2008 and before then, I was not keeping up with what was happening in the world of finance. At Truthdig, Robert Scheer asks why is that the head of the Federal Reserve is just finding out about the high and persistent level of unemployment in the US. He writes:
But why is Bernanke just now discovering this after having overseen the Fed’s purchase of trillions in toxic mortgage-backed securities from the too-big-to-fail banks that sacrificed people’s homes in a giant Ponzi scheme? Why did he throw all of that money at the banks without getting anything back in the way of relief for the people the bankers swindled?
The housing meltdown, which has robbed Americans of a considerable portion of their net worth, has led to the continued depressed consumer confidence that is the prime cause of crisis-level unemployment. In another of his too-late-to-matter moments, Bernanke acknowledged that “strong housing policies to help the market recover” would “clearly be very useful,” but he failed to suggest any.
Robert Scheer concludes his article by writing: “Whoever wins (the presidential election), we lose”.
I suspect the financial crisis has been compounded by the enormous expenses of the wars in Afghanistan and Iraq. It seems that the drone missile warfare is not cost free either, if as suggested that the drone attacks have turned the population of Pakistan against the US.
Is there any connection between the sovereign debt problems in Europe and the bank bailouts?