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By Rafael Azul 

7 July 2015

On June 29, Governor Alejandro GarcÍa Padilla announced that Puerto Rico’s $73 billion debt was “not payable.” GarcÍa Padilla said he would call on holders of Puerto Rican bonds to negotiate a debt payment moratorium to extend for several years so that the US commonwealth could build up financial reserves and revive an economy that has been in a decade-long recession.

 

Puerto Rico owes $73 billion, part of which ($48 billion) is in general obligation bonds. The rest ($25 billon) is owed by public corporations such as the water and sewage system and the island’s electrical utility. Its debt-to-gross domestic product ratio is 68 percent.

 

In the aftermath of the governor’s June 29 announcement, shares of Puerto Rican banks plummeted on Wall Street, losing between 9 and 30 percent of their value. The stock of bond insurance companies MBIA and Assured Guarantee also fell sharply. Both of these firms suffered heavy losses in the 2007-2008 collapse of the US housing derivatives market. The two have insured, between them, some $10 billion in Puerto Rican debt.

 

The bond rating agency Moody’s downgraded Puerto Rico’s bonds to Caa2, deep in junk bond territory. That was the seventh downgrade in five years.

Oppenheimer Funds, which holds $4.5 billion in Puerto Rican bonds, has declared its intention to fight for full and on-time payment, saying it will “defend the previously agreed-to terms in each and every bond indenture.” A spokesman for Oppenheimer said the firm believed the island could repay bondholders while providing essential services to citizens and growing the economy.

 

Speaking on behalf of the US financial aristocracy, the Wall Street Journal in a July 2 editorial called for a “Detroit-like overhaul” of the island’s economy, including cuts in welfare programs and the elimination of the minimum wage. Endorsing calls for Congress to pass legislation allowing Puerto Rico to declare bankruptcy (a remedy currently not available), the editorial added that Congress should “require a financial control board that can enforce changes in governance and other reforms that politicians refused to consider.”

 

The Obama administration has made clear there will be no federal bailout of Puerto Rico. Shortly after GarcÍa Padilla’s speech, White House Press Secretary Josh Earnest said: “There’s no one in the administration, or in DC that’s contemplating a federal bailout of Puerto Rico.”

 

In July 2014, a consortium of hedge funds met with representatives of Milco LP, one of the companies advising the Puerto Rican government, in support of legislation to restructure debt owed by a number of public corporations, including the Puerto Rico Power Authority (PREPA), the Puerto Rico Sales Tax Financing Corporation and the Public Buildings Authority.

 

The hedge fund group includes Brigade Capital Management LLC, Fir Tree Partners, Monarch Alternative Capital LP, Perry Capital LLC and Aurelius Capital. This last company, together with Elliot Management’s NML Fund, aggressively bought Argentine bonds at a discounted price following that country’s 2001-2002 financial implosion and debt default, and is aggressively fighting the Argentine government for full repayment in a New York federal court.

 

As Puerto Rican bonds sink deeper into junk status, risk-wary pension funds and investment funds are selling them off. As a result, the value of existing bonds has fallen to less than 70 percent of face value and their yields (which move in the opposite direction of bond prices) have soared by over 30 percent.

As was the case with the Argentine default, “vulture” hedge funds such as Aurelius are picking up outstanding Puerto Rican bonds at rock-bottom prices, hoping to benefit from a potential settlement with the commonwealth. The hedge funds are also speculating on the future privatization of public agencies such as the electrical and water utilities.

 

At the base of Puerto Rico’s debt pyramid are the assets of the state—including public corporations, pension funds, and current and future tax receiptswhich are being diverted from public services, infrastructure, education and social welfare into the coffers of financial predators.

 

A $1.9 billion payment was made on time on July 1, helping to stabilize bond markets and creating some breathing space. Part of that payment was new debt, as the Puerto Rico Power Authority renegotiated its obligations and borrowed even more cash. PREPA owes $9 billion and has obtained several extensions this year to avoid default.

 

Following the example set by the “troika” (European Union, International Monetary Fund, European Central Bank) against Greece, Puerto Rico’s creditors are taking a hard line. While agreeing to extend a debt payment deadline until September 15, they have warned that the agreement will automatically terminate if no progress is made in restructuring PREPA by September 1.

The restructuring, meant to make PREPA more attractive to potential buyers, involves collaboration with creditors in the day-to-day operation of the company, including the operation of power plants and transmission and distribution of electricity. It also includes the imposition of management efficiencies.

 

The object, according to PREPA, is to make the public utility more “sustainable, solid and profitable.” In 2014, PREPA already agreed to a bondholder-approved US management team to oversee its operations.

 

Last week, GarcÍa Padilla signed a law allowing public corporations to acquire Tax Revenue Anticipation Notes (TRANs) worth up to $400 million. Using this law, the government is preparing to saddle the workers’ disability insurance fund and the state Auto Accident Insurance Administration with government debt, to be backed by expected revenues from sharply increased sales taxes. The island’s government is also encouraging private debt holders and hedge funds to acquire TRANs.

 

The law also suspends government payments to a special fund for the redemption of general obligation bonds. Though Puerto Rico’s government house ( la Fortaleza  issued a statement that “the suspension of these deposits does not imply default with bondholders on the days when payment is due,” the measure is a clear signal to holders of Puerto Rican debt that the government may suspend future payments on its outstanding bonds.

 

Puerto Rico’s decade-long recession is, in part, a consequence of the end of US tax incentives that had attracted industry, especially pharmaceutical firms. The resulting fall in investments was compounded by the 2008 financial crisis, which shattered any hope of increasing government revenues.

 

Three successive administrations, headed respectively by Anibal Acevedo VilÁ, Luis Fortuño and Alejandro GarcÍa Padilla, have responded to the crisis with austerity policies. Acevedo VilÁ and GarcÍa Padilla are from the Popular Democratic Party, which defends the island’s current commonwealth status and has ties to the US Democratic Party. Fortuño is from the New Progressive Party, which favors statehood and has ties to the US Republican Party.

 

In a recent address to the legislature, GarcÍa Padilla placed the blame for the debt crisis on the Fortuño administration. In fact, throughout these nine years, the policies to deal with the economic crisis have been very similar, aiming to shift the burden onto the working class.

 

Rising unemployment has resulted in a wave of emigration. Beginning in 2006, some 300,000 Puerto Ricans, unable to find jobs, migrated to the United States despite rising unemployment in the US after 2008.

 

Since 2014, the government has steeply reduced public pensions and raised the retirement age. It has laid off 70,000 government workers, frozen wages, eliminated holidays and cut the customary Christmas bonus. It has consolidated public agencies, shut down over 100 schools and raised utility rates. In his June 29 speech, GarcÍa Padilla warned that more “sacrifices” lie ahead.

 

These cuts notwithstanding, government economists estimate that this year’s budget deficit will be as high as $740 million, half a billion more than previously projected. Rather than reviving the economy, the austerity measures are deepening the recession and compounding the debt crisis.

The recession and debt crisis are the latest consequences of the deindustrialization of Puerto Rico. This process predates the 2006 recession, having begun at the end of the post-World War II boom and developed in parallel with the economic decline in the US.

 

The establishment of the commonwealth in 1952 opened the way for the rapid industrialization of the island. Historian Raymond Carr describes this policy, known as “Operation Bootstrap”:

“At the height of Operation Bootstrap in the 1950s, one factory was established every day on the island … by 1968, Puerto Rico’s per capita income was the highest in Latin America.” [1]

 

During these Cold War years, the US used Puerto Rico as an example of the success of capitalism and a model for the rest of Latin America.

Aided by the island’s links to the US market and favorable tax policies, capital-intensive petrochemical, pharmaceutical and electronics industries established themselves in Puerto Rico. At their high point in 1980, these firms employed 180,000 industrial workers. Currently, the industrial work force of Puerto Rico is below 90,000.

 

The implementation of Great Society programs such as food stamps, Medicare and Head Start, together with increases in Social Security benefits, stabilized living standards through the 1980s. In the 1990s, the attack on social programs in the US and the elimination of tax subsidies for US businesses in Puerto Rico under the Clinton administration accelerated Puerto Rico’s decline.

 

By 2009, Puerto Rico had the fourth highest level of socioeconomic inequality in Latin America, after Brazil, Nicaragua and Paraguay.Today, about half the population of 3.6 million people lives in poverty. Many people cannot afford basic services such as electricity and running water. In 2012, the bottom 20 percent of the population received 1.7 percent of national income, while the uppermost 5 percent controlled 26 percent.

 

Those conditions of poverty and inequality have worsened. Puerto Rico is an island with a shrinking population, in which 35 percent of inhabitants receive food stamps and 41 percent are living in poverty, nearly double the rate of the poorest US state, Mississippi.

 

One hundred and seventeen years after the United States announced its arrival on the world scene as an imperialist power by seizing Puerto Rico from Spain (along with the Philippines and Guam) in the Spanish American War, Wall Street is set to impose a new financial dictatorship on the US territory.

 

http://www.wsws.org/en/article.../07/07/puer-j07.html

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They're pretty Momentum, but not as built as the one that threw you for a loop that was sitting on the steps in all her splendor in a previous post. I thought we were going to have to send medics your way. I'll never forget that, because I laughed so hard, which I often do while here.

 

There are 3 little Puerto Ricans in this family. They're beautiful and smart as can be. Their Puerto Rican-ness sets them apart from the others a tad. When they're here, they make my day. It's hard to describe, even thought they're 'black', they're "black" sort-of. Caucasoid-ness is noticeably in the mix and it shows. There's a feisty-ness, that makes ya go  You know, like Geraldo Rivera; he'll make ya go  and  at the same damn time.

Last edited by Norland

Puerto Rico's Debt Is Not Financial, It's Colonial: The Political Imprisonment of Oscar Lopez Rivera


Vicente "Panama" Alba joined us from Puerto Rico to discuss the political imprisonment and repression of Puerto Rican Nationalists -   July 3, 2015

 

 

 

Bio

Vicente Panama Alba is a long-time activist, Puerto Rican independence nationalist and former political prisoner in the US.

Transcript

Puerto Rico's Debt Is Not Financial, It's Colonial: The Political Imprisonment of Oscar Lopez RiveraJARED BALL, PRODUCER, TRNN: What's up world, and welcome back to the Real News Network. I'm Jared Ball here in Baltimore.

 

 

Summarizing the history of our subject this segment, columnist Dahr Jamail wrote the following in May for TruthOut.org: In 1981, Oscar Lopez Rivera was convicted in the United States in truly Orwellian fashion of the thought crime of seditious conspiracy, despite never having been accused of causing harm to anyone, let alone taking a life. Having been deemed dangerous by the U.S. government, Lopez Rivera was imprisoned. His release date, without a presidential pardon, will be 2027 when he is 84 years old.

 

 

To discuss this further is our guest Vicente Panama Alba. Alba is a union organizer and was formerly a member of the Young Lords party, and was himself incarcerated as a political prisoner for his alleged involvement in the Puerto Rican national independence movement.

 

 

What's up, my man, Panama. Welcome to the program and thank you again for joining us.

 

 

VICENTE PANAMA ALBA, FORMER MEMBER, THE YOUNG LORDS: Thank you for having me. I am actually in Puerto Rico.

 

 

BALL: Oh, I did not know that. Well, welcome, and thank you for joining us from Puerto Rico. Thank you, that's perfect.

 

 

So if you would, let's--I wanted to ask you to respond to that initial introduction and tell us a little bit about Oscar Lopez Rivera and the work that he was involved in that you were also a time involved in, and what led to his incarceration and what people are trying to do to get him out now.

 

 

ALBA: Well, you got to understand something. Puerto Rico was militarily invaded in 1898 after 400 years of colonialism under Spain. It came under U.S. imperialism's brand of colonialism. And that's what we have been living under since 1898 to the present. There has been numerous efforts on the part of the people to free Puerto Rico from colonial domination. In 1950, the nationalist party led an uprising. October 30, 1950. Many people were killed. Many went to prison. And that was one of the [great] examples that we have before us in terms of the struggle for national liberation.

 

 

Oscar Lopez Rivera was part of the Puerto Rican community in the diaspora inside the United States. He was born in Puerto Rico, migrated to New York first and Chicago, where he established, his family established roots. A Vietnam veteran, decorated for bravery in Vietnam, who in that process begins to develop a consciousness about the nature of the United States government and the nature of racism in America, and the United States, and the nature of the relationship of the oppressed and the oppressor.

 

 

He returns to Chicago and begins actively organizing in the Puerto Rican community in Chicago, and in the process makes a commitment to fight for the independence of Puerto Rico, for the liberation of Puerto Rico.

 

 

BALL: And if I could interrupt you just for a moment, you talked about the tradition that he was a part of. And I just wanted to call out some of the names for those who might not know. And please elaborate for me on any of these. But we're talking about also a legacy set down by people like Pedro Albizu Campos, and then later Lolita Lebron, and folks who--those are some of the more popular names associated with this struggle. But that's sort of the tradition that he was coming out of, correct?

 

 

ALBA: Absolutely. And the father of the Puerto Rican nation, Ramon Emeterio Betances, who was involved in the liberation of the Caribbean, he organized an uprising against Spain in 1860, 30 years before the United States invasion. Subsequently there were people, the legends, like Aguilar [alamca] who resisted in the invasion in 1898, the reorganization of the nationalist party under Pedro Albizu Campos. And the uprising in 1950 and subsequent other heroes and heroines such as the five nationalists that were freed from U.S. prisons in 1978. Lolita Lebron, Rafael Cancel Miranda, Irving Flores, Andres Figueroa Corderro, and [Oscar Collazo]. In the [1978]--.

 

 

BALL: And I'm sorry to interrupt you again, but that's such a great story. I mean--again, forgive the interruption. But those five you mentioned, I mean, they ran up in the house of Congress in Washington, DC with guns, demanding that there be freedom and liberation granted to their island. I mean, this was I think an extremely powerful and courageous act, something that seems to not get enough attention or respect.

 

 

ALBA: Well, two--it's actually two, two actions. One in 1950. The one before is 1950, Oscar Collazo, who was a nationalist, attempted to assassinate President Truman in what was then Blair House, which was the temporary residence of the President of the United States while the White House was undergoing renovations.

 

 

He and Griselio Torresola attacked Blair House. Griselio Torresola was killed in that action, and Oscar Collazo was arrested. Sentenced to death. The death sentence following a huge, international campaign, was commuted, and he was one of the five nationalists along with Lolita, Rafael and Irving, that were released in 1978.

 

 

The Fuerzas Armadas de Liberacion Nacional began operations taking armed propaganda actions in various institutions of the United States government and its corporate masters in the United States. That began '75, Oscar Lopez Rivera was arrested in 1981. Never was he linked to any of the military actions. He was never convicted, never linked or convicted to any deaths in the United States. But they assumed the position of prisoners of war. And him and the members of the FALN were convicted of seditious conspiracy.

 

 

Very ironic, because you cannot be seditious against the United States when you're fighting for the liberation of your homeland. You can be seditious if you're a U.S. citizen that wants to overthrow the United States government in the United States. But you can't be seditious for wanting the United States to leave your country. That's a very different situation, and it's one, in fact, the United States, the nation recognizes wars of liberation against colonialism. Colonialism is the enslavement of a nation. And that's what Puerto Rico is to the United States, is a slave nation.

 

 

BALL: Yeah, we saw here, Vicente, that Jan Susler, Rivera's attorney, said that his arrest in 1981 was overtly political, and she says that it's important to see Oscar not as an isolated case but as the latest example of a long trajectory of Puerto Rican resistance to U.S. colonialism, and the extent to which the U.S. will go to try to maintain its colonial control over Puerto Rico.

 

 

So Vicente, unfortunately we are out of time in this segment. I need to thank you very much for joining us. And please, if you would give one final comment as to how people can follow up on this case and this history and perhaps get involved in helping free Oscar Lopez Rivera.

 

 

ALBA: The way--there are two ways of freeing political prisoners. Through breaking them out of jail--and that has been done with Guillermo Morales. Broken out of Bellevue Hospital, another member of the FALN. Or through political campaigns. It is a sad statement to say that we, the Puerto Rican people, have been the only ones that have freed political prisoners through political campaigns. We freed the nationalists in 1978. We freed another group of FALN prisoners in 1999.

 

 

It's sad to say because there are many political prisoners in the United States that must be freed.

 

 

BALL: That's right.

 

 

ALBA: Now, Oscar Lopez, we need to launch a campaign. And the window of opportunity is closing rapidly because as it turns out, Obama, Democratic president, has skirted around the issue. If the election comes to be--the presidential election, you have one of two alternatives. A Democratic presidential candidate getting elected or a Republican. If a Republican gets elected, you forget about Oscar Lopez being released. If a Democratic party candidate gets elected, and it looks like Hillary Clinton will be that candidate, she has already stated her opposition to the release of the FALN prisoners. She did that when her husband released the prisoners in 1999.

 

 

BALL: So Vicente, again, apologies having to interrupt here again, but we do have to wrap up this segment. So what I'd like to do is conclude by encouraging people to ramp up the pressure on the current president, and encourage that he in his last couple of years here in office use his lame duck status to do something quite un-lame by pardoning and releasing Oscar Rivera Lopez and all the other political prisoners.

 

 

But Vicente Panama Alba, thank you very much for joining us here at the Real News Network. We greatly appreciate you taking the time.

 

 

ALBA: Thank you for having us.

 

 

BALL: And thank you for watching--.

 

 

ALBA: Free Puerto Rico.

 

 

BALL: Yes, indeed. Free Puerto Rico. And thank you for watching here at the Real News Network. And for all involved, I'm Jared Ball. And as always, like Fred Hampton used to say, to you we say peace, if you're willing to fight for it. So peace, everybody. Catch you in the whirlwind.

 

 

End

 

 

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.

So Puerto Rico is still encumbered with debt from the great recession? The banking thing? Maybe it's time for Puerto Rico to be independent especially since pres Obama is not down with helping them. I wonder what that will do for the HispAnic vote. Puerto Ricans vote in the US presidential elections and they tend to lean democratic as opposed to the republican leaning Cubans.

Obama may want to reconsider and at least do some sort of symbolic gesture like he is famous for. Puerto Ricans are his constituency too and Hillary will need their votes.
Originally Posted by NSpirit:
So Puerto Rico is still encumbered with debt from the great recession? The banking thing? Maybe it's time for Puerto Rico to be independent especially since pres Obama is not down with helping them. I wonder what that will do for the HispAnic vote. Puerto Ricans vote in the US presidential elections and they tend to lean democratic as opposed to the republican leaning Cubans.

Obama may want to reconsider and at least do some sort of symbolic gesture like he is famous for. Puerto Ricans are his constituency too and Hillary will need their votes.

Why not Obama bail out Puerto Rican banks like he did for the fukkin Wall Street criminals who caused the banking meltdown? Not one them gaddam crackasses in jail. He could have bailed them out with more regulations attached but he let them drown. This is the kind of shit that pisses me off. 

 

Last edited by Momentum
Originally Posted by Momentum:
Originally Posted by NSpirit:
So Puerto Rico is still encumbered with debt from the great recession? The banking thing? Maybe it's time for Puerto Rico to be independent especially since pres Obama is not down with helping them. I wonder what that will do for the HispAnic vote. Puerto Ricans vote in the US presidential elections and they tend to lean democratic as opposed to the republican leaning Cubans.

Obama may want to reconsider and at least do some sort of symbolic gesture like he is famous for. Puerto Ricans are his constituency too and Hillary will need their votes.

Why not Obama bail out Puerto Rican banks like he did for the fukkin Wall Street criminals who caused the banking meltdown? Not one them gaddam crackasses in jail. He could have bailed them out with more regulations attached but he let them drown. This is the kind of shit that pisses me off. 

 

 

In all fairness, if you remember, the "Bail-Out" was decided/voted on before President Obama was elected.

 

:

 

 

There comes a time in a man's life, especially one who is fairly well versed in recent history, when he just can't take the lies that are spewed out at him anymore. That's what happened to me when I listened to Rick Santorum, the Republican who wants to push his religious beliefs on you in your bedroom and running for President, giving his victory speech after he swept the primaries on Tuesday. He gave this ridiculous "Barack Obama thinks he's smarter than you" speech, and in it presented a lot of misleading and completely wrong information (which I'm used to hearing and just let that roll off my back), but he also perpetuated one of the biggest lies of the "conservatives", and I almost went into a rage. It's one thing for uneducated viewers of Fox "News" to think that Barack Obama was responsible for bailing out the banks. After all, a recent poll found that Fox News viewers were less informed about current events than people who watched no news at all.

 

No, my friends, Barack Obama unequivocally did NOT bail out the banks!! For the last time it was George W. Bush and his Treasury Secretary Henry Paulson (former CEO of Goldman Sachs) that cooked up that idea, hastily sped the plan through Congress (most of which are bought off by Wall Street anyway), and signed into law. Yes, TARP, the Troubled Assest Relief Program, was signed into law on October 3, 2008, a full month before candidate Obama was even elected! When Paulson was pushing his plan, he wanted to give the banks the money with absolutely no strings attached as quickly as possible and with no oversight whatsoever! Thankfully we had a few good Democrats who had heads on their shoulders and didn't allow $750 billion of the taxpayers' money go to the banksters just like that. However, remember what did happen? Just a couple of months later and again a year later? With the taxpayers' bailout money? Multi-million dollar BONUSES!!!! That's right, huge bonuses for the very same executives who played Russian roulette with their customers' deposits and investments (which was only legal because of the repeal of Glass-Steagall). Instead of being fired or investigated or going to jail for their crimes, these scumbags stole even more of middle-class America's money and pocketed it, and it was government sanctioned. Once again, why do you think there's an Occupy Wall Street?

 

I'm not saying Barack Obama is innocent. After all, as a Senator, and did vote for the bill that created TARP. He did support it. But as President, I think he was more responsible with the use of the funds. He did take some of the funds and use them to help homeowners rework their mortgages so they could keep their homes through several programs. This has helped hundreds of thousands of Americans who were hurt by the Wall Street recession to stay in their homes. He also directed some of those funds to be used in jobs creation programs. And let us remember, that most of the funds doled out to the banks in the bailouts have been repaid to the Treasury. The taxpayers have been REPAID (mostly)!

 

George W. Bush, the wealthy oil baron, and Henry Paulson, the former bank executive, were quickly trying to push their agenda to rescue their wealthy friends (campaign contributors) in an effort to save the nation from financial collapse. Given that administration's record on saving the nation from potential catastrophes,I personally question their motives (WMDs anyone?). And for any Republican, conservative, Tea Partier, or any other misinformed Fox "News" viewer to say that Barack Obama was responsible for the bailouts, this is an outright LIE! It could not be further from the truth. And it's time the record is set straight and we push back on this ridiculous misleading of the blind.

 

 

TAGS

Probably every politician running for anything everywhere should be in jail for some shit or another. All of them have their wallets on their brain and not much else. They talk up a smooth game for those that listen to that jazz. They'll send your kids to fight their wars, you'll be burying your kid, they'll be jitterbuggin' to the bank and someone will be thanking your DEAD KID for their SERVICE for continuing to make America "Great".

Originally Posted by sunnubian:
Originally Posted by Momentum:
Originally Posted by NSpirit:
So Puerto Rico is still encumbered with debt from the great recession? The banking thing? Maybe it's time for Puerto Rico to be independent especially since pres Obama is not down with helping them. I wonder what that will do for the HispAnic vote. Puerto Ricans vote in the US presidential elections and they tend to lean democratic as opposed to the republican leaning Cubans.

Obama may want to reconsider and at least do some sort of symbolic gesture like he is famous for. Puerto Ricans are his constituency too and Hillary will need their votes.

Why not Obama bail out Puerto Rican banks like he did for the fukkin Wall Street criminals who caused the banking meltdown? Not one them gaddam crackasses in jail. He could have bailed them out with more regulations attached but he let them drown. This is the kind of shit that pisses me off. 

 

 

In all fairness, if you remember, the "Bail-Out" was decided/voted on before President Obama was elected.

 

:

 

 

There comes a time in a man's life, especially one who is fairly well versed in recent history, when he just can't take the lies that are spewed out at him anymore. That's what happened to me when I listened to Rick Santorum, the Republican who wants to push his religious beliefs on you in your bedroom and running for President, giving his victory speech after he swept the primaries on Tuesday. He gave this ridiculous "Barack Obama thinks he's smarter than you" speech, and in it presented a lot of misleading and completely wrong information (which I'm used to hearing and just let that roll off my back), but he also perpetuated one of the biggest lies of the "conservatives", and I almost went into a rage. It's one thing for uneducated viewers of Fox "News" to think that Barack Obama was responsible for bailing out the banks. After all, a recent poll found that Fox News viewers were less informed about current events than people who watched no news at all.

 

No, my friends, Barack Obama unequivocally did NOT bail out the banks!! For the last time it was George W. Bush and his Treasury Secretary Henry Paulson (former CEO of Goldman Sachs) that cooked up that idea, hastily sped the plan through Congress (most of which are bought off by Wall Street anyway), and signed into law. Yes, TARP, the Troubled Assest Relief Program, was signed into law on October 3, 2008, a full month before candidate Obama was even elected! When Paulson was pushing his plan, he wanted to give the banks the money with absolutely no strings attached as quickly as possible and with no oversight whatsoever! Thankfully we had a few good Democrats who had heads on their shoulders and didn't allow $750 billion of the taxpayers' money go to the banksters just like that. However, remember what did happen? Just a couple of months later and again a year later? With the taxpayers' bailout money? Multi-million dollar BONUSES!!!! That's right, huge bonuses for the very same executives who played Russian roulette with their customers' deposits and investments (which was only legal because of the repeal of Glass-Steagall). Instead of being fired or investigated or going to jail for their crimes, these scumbags stole even more of middle-class America's money and pocketed it, and it was government sanctioned. Once again, why do you think there's an Occupy Wall Street?

 

I'm not saying Barack Obama is innocent. After all, as a Senator, and did vote for the bill that created TARP. He did support it. But as President, I think he was more responsible with the use of the funds. He did take some of the funds and use them to help homeowners rework their mortgages so they could keep their homes through several programs. This has helped hundreds of thousands of Americans who were hurt by the Wall Street recession to stay in their homes. He also directed some of those funds to be used in jobs creation programs. And let us remember, that most of the funds doled out to the banks in the bailouts have been repaid to the Treasury. The taxpayers have been REPAID (mostly)!

 

George W. Bush, the wealthy oil baron, and Henry Paulson, the former bank executive, were quickly trying to push their agenda to rescue their wealthy friends (campaign contributors) in an effort to save the nation from financial collapse. Given that administration's record on saving the nation from potential catastrophes,I personally question their motives (WMDs anyone?). And for any Republican, conservative, Tea Partier, or any other misinformed Fox "News" viewer to say that Barack Obama was responsible for the bailouts, this is an outright LIE! It could not be further from the truth. And it's time the record is set straight and we push back on this ridiculous misleading of the blind.

 

 

TAGS

That is true to a point what you say about Obama,  yes its true he did not pass TARP that was Bush so to be more accurate it was the Federal Reserve that continued during the Obama administration to bail out banks, 29 trillion dollars. TARP was something like 700 billion. Either way this was the biggest scam in world history. My problem is Obama could not do anything for Puerto Rican Banks? Perhaps he got something in the works. 

 

Its hard for me to give him credit for doing what any other cracka President would do. It seems to me, when it comes to people of color there is no consideration or action on their behalf. 

 

Federal Reserve bailout of Wall Street banks:

 

$29 Trillion is around twice the size of America's GDP.
The Federal Reserve claims they only lent $1.7 Trillion to the big banks.

Why the huge difference in totals? Because the Fed only counts the most outstanding at any one time.

 

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
"All Other Borrowers" - $2.639 trillion

 

http://www.dailykos.com/story/...of-the-Bank-Bailout#

Last edited by Momentum

"Its hard for me to give him credit for doing what any other cracka President would do. It seems to me, when it comes to people of color there is no consideration or action on their behalf. "

********************************************************

 

Oh, I was just posting a reminder of that fact; I never said that President Obama was blameless in everything, because I personally, take issue with so many things President Obama could have did, should have did, could have said, should have said, but didn't/wouldn't/won't [though, of course, none of which are the 'Fux' News' racist mantras/"dog whistles"].

 

 

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