Recent headlines have trumpeted the beginning of the end. The Great Recession is weakening. Yowza and yay.
But before we break out the confetti, isn’t there a wee little problem? Jobs are still hemorrhaging, state budgets are being butchered, and the woe shows no signs of mercy for those of us whose portfolio isn’t lounging in the Cayman Islands.
Isn’t it wonderful how the corporate-owned media kowtows to the needs of billionaires? For them, the Great Recession is turning a profit.
Especially some fat cat banks, notably the ones who are blatant servants of Mammon. Why? Because they sucked up Washington's bailout money and are now exploiting it for their own enrichment, not the general weal.
A prime example is Goldman Sachs. Paul Krugman writes in his op-ed:
“Many reacted with fury to the spectacle of Goldman Sachs making record profits and paying huge bonuses even as the rest of America, the victim of a slump made on Wall Street, continues to bleed jobs.” (“The Banks Are Not All Right,” Oct. 18)
Krugman notes that huge sums of relief cash was ladled out to the big banks so they could start lending again. You know, LENDNG. Giving money to others, who could then pass it along again, and so forth, stimulating all kinds of business. A single $100 dollar bill can be promised multiple times and fuel a thousand dollars of lucrative interaction. This is the first lesson of Economics 101.
So let’s get those banks to fork out and generate some jobs, green jobs while we’re at it!
But Goldman Sachs isn’t reaping its filthy lucre by lending.
They’ve regressed, headed right back to that great ethereal casino of speculation, which is full of stock market slot machines and maybe-this-will-spike roulette wheels. Nothing like a fiduciary gambling addiction to run us deeper into fiscal quicksand.
Want to buy some swampland in Florida?
No, Goldman Sachs isn’t lending. They’re wild trading. Wheeler-dealing. Betting on derivatives, futures, and all manner of variations and options in-between.
This is sweet in terms of a quick million or two for privileged executives. But what about the rest of us? And what about the long-term health of our economy, or our precious Gaea, for that matter?
Update: See also today's Washington Post article: "At Rescued Banks, Perks Roll On"