Activities in Wall Street are changing situation of taxpayers

The activities of Wall Street are many – with borrowed funds it is taking control, stripping off assets, cutting jobs and finally cashing out. The bailout funds coming from the taxpayer’s pockets saved Wall Street when it was choking on the throw up of its own gluttony.

Today Wall Street Journal says, “Major U.S. banks and securities firms are on pace to pay their employees about $140 billion this year — a record high.” This amount is more than the adding together of budgets of various departments of USA – Commerce, Education, Energy, Housing and Urban Development, the National Science Foundation and the Environmental Protection Agency.

The ordinary worker is earning less currently after adjusting with inflation as compared to the 70’s The CEOs of Wall Street who were responsible for cutting wages as well as benefits of employees, for off-shoring manufacturing together with services as well as research and development are being rewarded. They are gleefully rolling on the tax cuts initiated by the Bush government, transforming mortgages into loan sharks and clearing up equity on houses, education and retirement funds. Other private and public investments have been caught up in their net of gambling.

The instance of Goldman Sachs can be cited. According to a new investigation series named McClatchy Reports, it “peddled billions of dollars in shaky securities tied to sub-prime mortgages on unsuspecting pension funds, insurance companies and other investors when it concluded that the housing bubble would burst.”

If the Great Depression of the 30’s led to the surfacing of the New Deal, the Great Recession of today has led to the Great Ripoff.

The latest report by the inspector general of TARP stated, “The firms that were ‘too big to fail’ … are in many cases bigger still, many as a result of Government-supported and -sponsored mergers and acquisitions; the inherently conflicted rating agencies that failed to warn of the risks leading up to the foreclosure crisis are still just as conflicted; and the recent rebound in big bank stock prices risks removing the urgency of dealing with the system’s fundamental problems.”

Neither the Bush nor the Obama administration have been able to prod the mega banks to start lending again and stop gambling once more. The bailout funds are being used to pay massive bonuses, start off another stock market bubble and make even more dangerous bets.

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