Ain't Corporate Welfare grand?

Let's face it, this country -- our government -- is all about Corporate Welfare.

The invasion of Iraq?  Corporate Welfare.  Literally millions of dollars handed out, in shrink-wrapped bricks, from the backs of trucks.  Billions given to "contractors" who can't even keep sewage from backing up into light fixtures in the new Police Academy in Iraq.  Halliburton and KBR, who, without government contracts, would cease to exist.  Most of our 500 billion/year "defense industry", which is busy using our money to make things like cyborg-moths and robotic SUV's, you know, stuff we REALLY need.  

And today's example:  The 30 billion dollar pork-chop hung around the neck of Bears Stearns so that JP Morgan would play with it.  

Here's what inspired me to write this.  It's from a comment over at "Clusterf**k Nation" and a commenter with the handle of Tanguerena:

So. In this week's Rodney Dangerfield moment, the Fed had to tie a $30 Billion pork chop around Bear Stearns' neck to get JPM to play with them.

And to think that JPM only paid $236 Million for that $30 Billion pork chop (it is a non-recourse loan, which means the Fed can't go after JPM if they default on it). Ain't corporate welfare wonderful?

If you go here you can see the most egregious examples of massive corporate welfare, all in the name of "defense".  Defense from what?  Do we really need to spend money on laser-guided bullets to better protect our country?

Then again, maybe you need a job?  Where else to get one but in the Corporate Welfare industry?

At any rate, what we see today is a classic case:  JP Morgan playing the government like the professional con men they are, scamming them into handing over $30 billion of our dollars so that they can buy this lowest-hanging of fruits at pennies on the dollar.

Here's what Kunstler has to say about it:

    Now, apparently, we'll also opt for a bail-out of all those who tried to become rich by getting something for nothing at both ends of the Ponzi scheme called the housing bubble -- the "little guys" who signed mortgage contracts they could never hope to pay off, and the Wall Street playerz who bundled these hopeless contracts into fraudulent securities (and their enablers in the ratings agencies, plus the hedge fund smoothies who tried to cash in by using recondite algorithms to dissolve the risk associated with imprudent lending.) The bail-out is likely to accomplish nothing except the more rapid bankruptcy of government at all levels and a second Great Depression at ground level (worse than the first one).

    Over the weekend, the Federal Reserve engineered a $30-billion dollar Saint Paddy's day present for the JP Morgan bank by handing them the corpse of Bear Stearns. The object of the game is to prevent the "assets" of Bear Stearns from going to the auction block, on which they would be discovered to be nearly worthless, which would instantly render all similar assets held by the other big banks to be similarly worthless, and would result in a universal margin call that would pretty much unwind the hallucinated "wealth" acquired the past ten years.

I would like to see a Dem, any Dem, say after me:  

End Corporate Welfare As We Know it.

Yeah, like that's gonna happen.  

I would develop this more, but I have to go get busy trying to save my financial ass so my kids don't end up living in our car.  

•  tips accepted in Euros only

  I also accept currency from Brazil and Chile.

  Precious metals, too.

  by Inky99 on Mon Mar 17, 2008 at 10:55:08 AM PDT

  •  Out of curiousity

    why Chilean pesos?  As an expat currently living in Santiago, is there something I should know?

    by TigerMom on Mon Mar 17, 2008 at 11:07:16 AM PDT

    •  I was researching foreign currencies

      and noticed that the Chilean currency had gone up very nicely against the dollar in the last year or so.  

      So had the Brazilian.  

      Both had done better than the Euro, or the Canadian dollar.  

      Maybe you could tell me why that is!  Because I really have no idea!

      by Inky99 on Mon Mar 17, 2008 at 11:53:05 AM PDT

      •  Chile's economy

        is one of the fastest growing in South America.  They are averaging 5-7% growth a year.  I'm no economist, but just looking around Santiago, there are signs that the economy is strong here:  you can't swing a cat without hitting something under construction; the stores are filled with shoppers; and people have quite a bit of disposable income available.

        Despite the economic expansion the country has experienced over the last 15 years or so, there is still an amazing disparity between rich and poor.  While the poverty rate has declined, there are still an enormous number of people living extremely destitute lives.  It is slowly changing, however, with a new emerging middle class here.

        If you want to get a feel for what's happening down here, may I suggest checking out The Santiago Times website.  It's the English language newspaper for Santiago.  Not the most in-depth stuff, but it gives a broad overview of what's happening in Santiago and beyond.

        by TigerMom on Mon Mar 17, 2008 at 06:36:20 PM PDT

        •  Cool, thanks

          how much English is spoken down there?  (I'd be surprised if any, just curious, if they have an English version of their paper)

          by Inky99 on Tue Mar 18, 2008 at 02:22:00 PM PDT

          •  Many of the younger Chileans

            are learning English, and the more educated/wealthier Chileans tend to know English as well.  They have a certain fondness for American culture (clothes, music, TV and the like).

            The Santiago Times is a newspaper that was started by an American and is currently run by mostly expats and exchange students.  It helps to serve as a resource for the expat community down here.

            I've only been here about 5 months now.  We'll probably be staying on for about 2 years.  I'm having a great time.  Santiago is a very vibrant city.

            If you ever come to visit, the first Pisco Sour is on me!

            by TigerMom on Wed Mar 19, 2008 at 10:06:51 AM PDT

  •  I have no euros, but will accept gold? n/t

    by miller415 on Mon Mar 17, 2008 at 11:25:12 AM PDT

    •  Precious metals welcome!

      certainly!

      by Inky99 on Mon Mar 17, 2008 at 11:50:36 AM PDT

•  And in true Corporate Welfare fashion...

  ...none of the po' folk who have their retirement security sunk into the stock market, via the 401k, will get bailed out.  Privatize the wealth, socialize the risk...

  by Ken in MN on Mon Mar 17, 2008 at 11:00:06 AM PDT

  •  Exactly! n/t

    by Inky99 on Mon Mar 17, 2008 at 11:02:18 AM PDT

•  Question

  The object of the game is to prevent the "assets" of Bear Stearns from going to the auction block, on which they would be discovered to be nearly worthless

  ,

  Inky, can you elaborate on which "assets" the articles refers to?

  And yes, this is that guy who thought you were his ex girlfriend.

  by Suburban Blue on Mon Mar 17, 2008 at 11:03:05 AM PDT

  •  Inky99 is human? I thought Inky was...

    a computer generated program created by Michael Moore and Ben Afflack to topple our capitalistic way of life and sink us into the belly of socialism.

    My bad.

    In 2006, we replaced the rethugs with Democrats.  In 2008, we will replace the democrats with BETTER Democrats.

    by miller415 on Mon Mar 17, 2008 at 11:30:34 AM PDT

    •  Shhhh!

      You're not supposed to know that.  

      Now.  I.  Must.  Kill.

      by Inky99 on Mon Mar 17, 2008 at 11:51:23 AM PDT

•  When JPM stock is UP $2.50 a share

  in a DOWN market/day for financials, that says something.
  With 3.4 BILLION shares outstanding, that means the market thins the deal adds at least $8.5 billion to the value of the company. and that takes in the assumption that their stock would NOT have went down today with the rest of the financials.
  JPM has money set asid ($6 billion)e to pay for investors lawsuits

  by sd4david on Mon Mar 17, 2008 at 11:09:57 AM PDT

  •  Wonderful world we live in.

    When it comes to blinking first, who do you think will?  Surely the Fed...the sharks don't blink unless they are feeding.

    by gdwtch52 on Mon Mar 17, 2008 at 11:50:51 AM PDT

•  Socialize the risk; privatize the profits

  It's the American Way. Get with the program.

  by gjohnsit on Mon Mar 17, 2008 at 12:47:47 PM PDT