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View Diary: House GOP intend to destroy public employee unions (364 comments)

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  •  TooFolkGR (0+ / 0-)

    I really would like to share in your reality some day but until then I will rely on articles written that tell me otherwise.........

    Indeed, the only way to call TARP a winner is by defining government sanctioned financial fraud as the main metric of results. The finance leaders who are guilty of wrecking much of the global economy remain in power – while growing extraordinarily wealthy in the process. They know that their primary means of destruction was accounting "control fraud", a term coined by Professor Bill Black, who argued that "Control frauds occur when those that control a seemingly legitimate entity use it as a ‘weapon’ to defraud." TARP did nothing to address this abuse; indeed, it perpetuates it. Are we now using lying and fraud as the measure of success for financial reform?

    Virtually all of the goals of TARP could have been achieved via regulatory forbearance, rather than government bailouts. Money was "repaid", not because the banks were accumulating massive profits as a consequence of their revival, but largely as an outgrowth of the accounting tricks sanctioned by Congress and the White House in the wake of the 2008 financial crisis. Why did the governments simply not temporarily suspend capital requirements? A government can always keep a bank in operation without bulldozing it. You can keep them functional via government control (i.e. the FDIC) and get rid of the corrupt management before you undertake anything else. There is no numerical limit to the amount of available bank capital. It’s about price, not quantity.

    In any event, inadequate capital didn’t cause the financial crisis. Lying and corruption did.

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