Supposedly Dodd-Frank was going to end “too big to fail.”Â However, it appears that not only is that not the case – the big banks and the rich who back Barack Hussein Obama – are sitting pretty on our tax dollars, no matter what. Corporatism is the biggest problem this Country faces, because when you are not allowed to fail (similar to human beings getting “free” government money), you don’t have to worry about failure – you’ll always be rescued. Corporatism is as nasty as Socialism and Marxism because it is the government – not free enterprise – that is footing the bill on the backs of hardworking American citizens. We will never get up and have a limousine at our front door to go to work, but the corporatists at Goldman Sachs, Bank of America and Citigroup do, yet they continue to suck at the teat of the big money cow of the American taxpayer. Socialists Masquerading As Free Market Bankers.
Goldman Sachs, Bank of America, Citigroup, and other giant U.S. banks have been profiting at your expense through an implicit taxpayer guarantee of their debt above and beyond the bailout funds they have already received, a recent report from credit agency Moody’s shows.
Last week, the ratings agency announced a review of whether these bailout assumptions still apply after passage of the Dodd-Frank financial regulation bill. The Moody’s review will be the truest test yet of President Obama’s promise that the legislation — derided by Republicans as a bailout bill — can end the “Too Big To Fail” dynamic that has encouraged financial risk taking and given these banks an unfair advantage.
The implicit government guarantee these banks enjoy is a subsidy. The “five notches of uplift from government support assumptions” that Moody’s gives to Bank of America translate into real profits for Bank of America. Without a presumed bailout, Bank of America’s senior debt would be rated Baa3, just barely on the right side of the “Investment Grade”/”Speculative Grade” boundary. The presumed “government support” raises the bank’s debt rating to A2, which is “very low credit risk.” Even Wimpy from “Popeye” would be a “very low credit risk” if you could count on Ben Bernanke and Tim Geithner to pay for his hamburger.
We sent a majority of Republicans to DC to stop this corporate cronyism. In 2012 we will send them a full complement of Senators and a President to eradicate this insanity.Â No matter how many election cycles it takes, we must continue to elect conservatives from We the People to get the job done.