This is worth repeating:Referring to the Bear Stearns financial "assistance," provided by the Federal Reserve, ... er, I mean the tax payer, Senate Banking Committee chairman, and unsuccessful Democratic presidential nominee, Senator Christopher Dodd had this to say:
What it looks like, if I had to frame this to people is that, we've socialized risk and privatized reward.
I don't think it's an original quote, but you don't see it spoken by a US Senator on corporate media too often.
Contact the Banking Committee to express your support of this statement by Dodd.
Sources:
AFP, US senators worry about taxpayer exposure to Bear Stearns, April 3, 2007.
2 comments:
The media coverage of this is getting things wrong. Bear Stearns is not getting a bailout. That company is going away and its investors are getting pennies on the dollar for their stocks.
What is happening is that JP Morgan Chase is getting a huge federal loan guarantee and a fire sale price. (Bear Stearns' headquarters building in Manhattan is worth more than all the JP Morgan Chase stock offered for Bear Stearns.)
Even worse, any risk for JP Morgan Chase is being assumed by the taxpayers. JP Morgan Chase is ripping off the middle class.
The whole system is getting a bailout. The guys at the top of Bear Stearns are going to get out of this just fine. Their shareholders? Not so much. Bear Stearns was lying about their assets to the very end. JP Morgan as well, except now they get this sweet deal dropped right in their lap so they can sift through, take what they want of the decent assets and shift what they don't to the the Fed...
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