The fat cats of Wall Street are prowling around in crisis

Wall Street ‘fat cats’ are prowling around cockily while the country remains caught in the net of foreclosures and unemployment. Lloyd Blankfein the king of Goldman Sachs shrugged off the crticism levelled against the financial operations saying that he was merely a banker “doing God’s work.”

Analysts are now calculating that from the profits raked in by the corporations of Wall Street in 2009, nearly $200 billion would go as bonuses. Of this $23 billion would be pocketed by Goldman Sachs employees. What has been missed out from memory is that these profits were largely “hidden gifts” – as aptly said by George Soros.

These covert gifts came from the government and that meant – from the ordinary tax payer who comparatively earns merely a pittance. Also erased from memory is that the recession plaguing the real economy started by the financial sector continues to plague and cause distress the country.

It had been hoped that the year would have been one of retribution but instead it is seeing the vulgar victory of the financial sector. It is fiddling while America is burning. Why has this been allowed to happen?

It would not have taken place if the government that is guardian and manager of the taxpayer’s kitty was not allowed to believe that if finance was not saved capitalism would vanish. In America and in many other parts of the world such a persuasion is not difficult as the rooms between the government and the financiers are interconnected with doors that are kept wide open.

Neoliberal thoughts argue that finance should dominate the field of economics. It need not be emphasized again the obvious links between Wall Street and Washington. What was astounding the lengths to which finance clawed into the decision making tools of the government.

The staggering size of finance and the closeness between the markets and the entities meant that if some of the jumbo bodies were permitted to fail the entire system would fall flat. This could not be allowed because of the tremendous damage it would have caused on the real economy and the man on the street.

In this financial age the government had made use of the financial system to generate reasonable and sometimes astronomical growth in the real economy. It poured liquidity into the market through a liberal monetary policy in order to prop up a regime with neglibible interest rates and burgeoning loans.

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