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Let's talk about bailouts and accountability.
During the last financial crisis, I was working at Merrill Lynch. Everyone on Wall Street was really worried the banks were going to be nationalized.
No one in DC apart from @SheilaBair2013 had the imagination to even consider it
During the last financial crisis, I was working at Merrill Lynch. Everyone on Wall Street was really worried the banks were going to be nationalized.
No one in DC apart from @SheilaBair2013 had the imagination to even consider it
There's a myth: "the banks paid back TARP with interest"
It's false.
It doesn't take into account trillions in secret emergency Fed Loans that went not just to failing US banks, but also to foreign-owned banks & non-financial firms like @CaterpillarInc https://www.theguardian.com/business/2010/dec/02/us-federal-reserve-bailouts-multinationals
It's false.
It doesn't take into account trillions in secret emergency Fed Loans that went not just to failing US banks, but also to foreign-owned banks & non-financial firms like @CaterpillarInc https://www.theguardian.com/business/2010/dec/02/us-federal-reserve-bailouts-multinationals
The ONLY reason know about this then-secret Fed lending program is b/c of the heroic efforts of two Bloomberg reporters: the late Mark Pittman, & @bobivry
The Fed & a bank trade group, @tchtweets, fought hard to suppress the info.
They lost in court.
https://bir.brandeis.edu/bitstream/handle/10192/31439/LDB100Goldstein.pdf?sequence=5
The Fed & a bank trade group, @tchtweets, fought hard to suppress the info.
They lost in court.
https://bir.brandeis.edu/bitstream/handle/10192/31439/LDB100Goldstein.pdf?sequence=5
No one ever had to "pay for" the loans that the Fed gave out to any company that needed them in 2008. These firms handed the Fed toxic, unsellable assets, in the middle of a frozen market, and the Fed gave them cash.
And they tried to keep it secret.
And they tried to keep it secret.
Fast forward to now:
- Big oil made up 91% of defaulted US corporate debt in Q3 2019, and for 13% of the riskiest corporate debt
- The Fed is now indirectly bailing them out by purchasing junk bonds. This disproportionately benefits them
Accountability?? https://www.ft.com/content/55f74150-4225-11ea-a047-eae9bd51ceba
- Big oil made up 91% of defaulted US corporate debt in Q3 2019, and for 13% of the riskiest corporate debt
- The Fed is now indirectly bailing them out by purchasing junk bonds. This disproportionately benefits them
Accountability?? https://www.ft.com/content/55f74150-4225-11ea-a047-eae9bd51ceba
When it comes to bailing out WORKERS, what do we hear?
That there are "competing priorities." That we have to "pick and choose." That we "can't do everything."
Except: we ALWAYS do EVERYTHING for corporations. I learned that in 2008, when I worked at a big corporation, Merrill
That there are "competing priorities." That we have to "pick and choose." That we "can't do everything."
Except: we ALWAYS do EVERYTHING for corporations. I learned that in 2008, when I worked at a big corporation, Merrill
NO ONE at Merrill Lynch in 2008 thought that Washington was going to rescue it with zero accountability.
There was talk and fear on the trading floor about being nationalized. That the good times were over forever.
Guess what? DC had less imagination that Wall St traders.
There was talk and fear on the trading floor about being nationalized. That the good times were over forever.
Guess what? DC had less imagination that Wall St traders.
Meanwhile, today, hedge fund managers are raiding the PPP meant for small business. https://www.bloomberg.com/news/articles/2020-04-14/hedge-fund-managers-are-claiming-bailouts-as-small-businesses
It would be very trivial to write legislation to prevent this. Hedge funds & PE rely on an exclusion from a law called the Investment Company Act. So where's the bill?
It would be very trivial to write legislation to prevent this. Hedge funds & PE rely on an exclusion from a law called the Investment Company Act. So where's the bill?
The cash aid Congress passed is getting to the poorest last, because they're the least likely to have direct deposit info on file with the IRS, & because Trump wanted his name on the paper checks.
All while banks feast on returns from market volatility https://www.bloomberg.com/news/articles/2020-03-10/jpmorgan-citigroup-feast-on-equity-derivatives-in-virus-panic
All while banks feast on returns from market volatility https://www.bloomberg.com/news/articles/2020-03-10/jpmorgan-citigroup-feast-on-equity-derivatives-in-virus-panic
As @SenWarren noted, we can get people cash, or we can reduce expenses.
One easy way the government could cut expenses to 43 million people?
#CancelStudentDebt
The gov't OWNS most of the federal student debt. Betsy DeVos could wipe it out tomorrow. https://www.salon.com/2020/02/01/to-cancel-student-debt-you-dont-need-congress_partner/
One easy way the government could cut expenses to 43 million people?
#CancelStudentDebt
The gov't OWNS most of the federal student debt. Betsy DeVos could wipe it out tomorrow. https://www.salon.com/2020/02/01/to-cancel-student-debt-you-dont-need-congress_partner/
The whole Democratic is now on board with #CancelStudentDebt:
- @SenateDems proposed a min $10K cancellation & gov't making your loan payment each month
- Pelosi bill included it
- @JoeBiden supported
- @RepPressley @Ilhan bill to cancel $30K minimum
Guess who said no? The @GOP
- @SenateDems proposed a min $10K cancellation & gov't making your loan payment each month
- Pelosi bill included it
- @JoeBiden supported
- @RepPressley @Ilhan bill to cancel $30K minimum
Guess who said no? The @GOP
(Side note: If you want ALL THE RECEIPTS on #CancelStudentDebt and who called for what in the stimulus first, I got you!) https://twitter.com/alexisgoldstein/status/1241506764505391106
But still, what do we hear?
"We can't do everything"
"We need to focus our priorities."
There is a $454 billion slush fund for corporations run by #ForeclosureKing Steven Mnuchin. Corporations don't have to pick "priorities" for their money.
Neither do we
"We can't do everything"
"We need to focus our priorities."
There is a $454 billion slush fund for corporations run by #ForeclosureKing Steven Mnuchin. Corporations don't have to pick "priorities" for their money.
Neither do we
But what we DO need to do is make it plain and simple to our lawmakers that we are not going to do 2008 all over again.
We are not going to accept that help will "trickle down" as firms that got drunk on debt get bailed out by the billions.
The people need relief, too.
We are not going to accept that help will "trickle down" as firms that got drunk on debt get bailed out by the billions.
The people need relief, too.
But please understand: when you see anchors on @CNBC showing more outrage for the inequities this crisis is causing (props @SaraEisen), know this is the same as it was in 2008.
Washington lacks imagination and courage.
So let's give them both. https://twitter.com/alexisgoldstein/status/1250542313077641217
Washington lacks imagination and courage.
So let's give them both. https://twitter.com/alexisgoldstein/status/1250542313077641217
