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  • Our New Gangster Economy


    Last week Citigroup struck a deal with Senate Democrats accepting the Dems mortgage cram down in exchange for … well not much really. The Wall Street Journal explains why:

    Since October, the government has invested $52 billion in Citi, while agreeing to eat up to $249 billion in losses on the bank’s toxic real estate portfolio. And so it’s really hard to say no when those Washington “investors” call for a favor. In the 1990 Martin Scorsese movie, a restaurant owner realizes too late that a partner big enough to protect him is big enough to take everything he has. As Ray Liotta narrates, “Now he’s got Paulie as a partner. Any problems, he goes to Paulie. Trouble with a bill, to Paulie . . . But now he has to pay Paulie.”

    And for those of you who don’t remember how that story ends, eventually Paulie is taking so much off the top, that the owner ends up torching the place for the insurance money. But don’t worry, its not like the interest groups that spent hundreds of millions of dollars electing Democrats have a long wish list that will only make it harder for real businesses to survive. Oh wait, they do.

    Posted in Economics [slideshow_deploy]

    5 Responses to Our New Gangster Economy

    1. Ozzy6900 says:

      What a great analogy, "The Gangster Economy"! It can go along with the "Gangster Guardians of the Constitution" (aka The Supreme Court).

    2. ellerubio,texas says:

      I have always respected authority and obeyed the law and paid my taxes, nor have I ever broken the law.

      Our goverment has forgotten its people and we go about living our normal lives and have become complacent or perhaps trusted that our goverment would do the right thing.

      Ask yourself those that are reading this comment how many times have you written to your state represenatives to question a new law or bothered to find out who they really represent.

      This morning when CNN announced that our own goverment basically gave away 350 billion to AIG or CITI without really knowing how the money is being allocated. Who is benefiting from the bail out? ( It sure the heck isn't me)

      I can tell you it is not the American Public the blow Joes that are going out there and making a living.

      It's like being a victim of a crime.

      The goverment has forced themselves on us without our permission, used and abused and now we the victims and have to pay for crooks abscounding off with our innocence.

      Nobody asked me if I want to pay for this deficit.

      The stimulus package is a bone being thrown to the American public it's hush money and it is dirty money.

      Since when do people get away with stealing why are we not going after all the AIG Executives, Martin Sullivan and Robert Willumstad, Maurice Greenberg?

      Lets not leave CITI, Rubin Prince , Kaden, Krawcheck, Crittenden.

      Why are we not questioning why President Bush has left our economy in such a state?

      As an American Citizen I have come to realize that we the people need to voice our concerns in Congress after all there job is to do the best job for the people.

      I feel that to much power has been left unchecked and they are like small children left unattended they become wild.

      They are thugs.

      Lobbyist's are bribers and the everyone else takes a piece of the pie.

      In this case the pie has been eaten and everyone is pointing the finger as to who really ate the last piece.

      My main concern is that now they want to release 350 billion from Tarp, only our goverment body did not do a very good job with the first 350 billion they basically gave away.

      In my own budget, I have to know where all my money goes when I pay bills.

      No one is responsible for my mortgage payment the last time I looked it was all on me.

      I feel that we are being taken advantage of and we the people need to stop being afraid to voice our opinions and our views.

      That's what made our nation a "Great Nation" back in the days of being innocent we stood up for what we believed in.

      Sometimes you have to come home with that black eye or the bloodied nose to let those "Gangsters" know you have had all your going to take.

      I have gone from being a "Soccer Mom" to "Southern Girl with an Attitude."

    3. Duane Phinney Pensa says:

      The firm is not owned by U.S. bankers and businessmen but rather by the Abu Dhabi Investment Authority, a sovereign wealth consortium of oil-rich Middle Eastern countries, who gained control of the megabank in November 2007. Presently, the largest single shareholder is Prince al-Waleed bin Talal of Saudi Arabia.

      They don't need anymore of the taxpayers money!

    4. Marshall Hill-Michig says:

      If we want Our Great Country to go on,we must pay

      attention to what Politicians are doing and how

      they Vote on Issues.They have run rampant for a

      long time!They cannot understand the People they

      serve,when they are in D.C. inhaling the Gas of

      we are Entitled!

    5. Barb -mn says:

      Nice picture. You'd never know Barney Frank has the voice of a cartoon character. In fact, he seems more suited for that position. Get out of government, Barney. Be productive and get a real job in the private sector that seems to be naturally suited for you. You could make an HONEST LIVING? Or could you? Time may tell.

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