As 2009 comes to a close the banks, lavishly supported by big taxpayer funded bailouts, Fed programs and zero interest loans they can use to speculate in commodities and securities markets, are now poised to finally report a profit. MSNBC estimates bank profits through Q3 to be $22.5 billion. That's total industry profits, an amount that is not even half of what one major bank received in free bailout money. Last year Paulson handed out TARP money in $50 billion checks to the big four, with lesser banks being given amounts of $10 to $25 billion each. After all that, and trillions more in Fed program support, the banking industry has a net profit of $22.5 billion. And this is not even mentioning the FASB accounting rules changes that allow banks to report the values of their rotten loan portfolios at double their real worth.
Now get this... After manipulating that little profit of $22.5 billion, the banking industry is all set to congratulate themselves with an annual Christmas bonus bonanza reported to exceed $162 billion!!! The banks are paying over seven times their total profits in bonus money? Wow...what an industry. Sign me up. This bonus payout also exceeds all Federal money devoted to helping small business and stimulating employment in this depression. Total bank lending to small business is way down this year...and why not? Banks have determined that they can use the free zero interest Fed loans better by speculating in the markets, not lending. In fact, banks make most of their money this way now, not by traditional lending operations or even their usurious credit card operations.
So Merry Christmas, America. Think on this if you end up in the unemployment line. And come January a million people will see their unemployment insurance benefits expire, (about 30,000 per day)....This just about the time those fat bonus checks get deposited in the accounts of the men and women who wrecked the economy, and sent all the rest of us the bill.
Now get this... After manipulating that little profit of $22.5 billion, the banking industry is all set to congratulate themselves with an annual Christmas bonus bonanza reported to exceed $162 billion!!! The banks are paying over seven times their total profits in bonus money? Wow...what an industry. Sign me up. This bonus payout also exceeds all Federal money devoted to helping small business and stimulating employment in this depression. Total bank lending to small business is way down this year...and why not? Banks have determined that they can use the free zero interest Fed loans better by speculating in the markets, not lending. In fact, banks make most of their money this way now, not by traditional lending operations or even their usurious credit card operations.
So Merry Christmas, America. Think on this if you end up in the unemployment line. And come January a million people will see their unemployment insurance benefits expire, (about 30,000 per day)....This just about the time those fat bonus checks get deposited in the accounts of the men and women who wrecked the economy, and sent all the rest of us the bill.
