Backlit Bank of America logo
Backlit Bank of America Logo ~from MoneyBlogNewzs~
(with thanks to Flickr.com)

We are coming up on the Fall of the year 2011 in a couple of months. So we are approaching the third anniversary of the fall of Bear Stearns, and Lehman Brothers, and the subsumation of Countrywide Mortgage, and Merrill Lynch.

Three years is a long time, particularly if you measure it in 24 hour news cycles. The majority of the American public never even bothered to attempt to fulfill their obligations to be informed members of the electorate in a democracy. No matter, our democracy has been dead since 1999. Most aren’t even aware of that seemingly salient piece of information.

My most vivid memory on this upcoming anniversary is of that despicable piece of drek Hank Paulson, stepping to the podium to give a press release rationalising the violation of the “sacred” “free” market principle of “moral” hazzard ( I’m going to wear out my quotation key……so for the purposes of this post, just assume my every use of a buzz word from the vernacular of government or big finance to be veritably dripping with sarcasm ). This former Goldman Sachs CEO had the shameless audacity to require the general American taxpayer to make good on the losses incurred by the perpetration of a crime of such magnitude that it had been heretofore unimaginable.

This nearly 800 billion dollar check that our corrupt to the very center of their blackened rotting souls representatives so willing wrote on our behalf with the no strings attached provision unquestioned (although they all did their best, each to his or her own thespianic limitations, to exhibit the appropriate levels of responsible consternation), was supposed to be used to retire toxic assets. Very shortly though, good ol’ Hank decided it was necessary to exercise the no-strings provision and just hand out the money to the TBTF bank/casinos. This of course to save us all from worldwide financial armageddon.

As the months went by we started to learn of  more huge sums of money that were being given to these TBTF bank/casinos at the FED’s bank window, interest free. A virtual license to print money, orchestrated now by Timothy Gietner, who was referred to this weekend by fellow FDLer Kassandra in a comment on fairlefts excellent post as “Little Lord Fauntleroy”. Too perfect.

Speaking of excellent posts, the following short excerpt from Edward Teller’s incredible post this weekend could easily serve to replace all I’ve written so far on this post.

“Left” and “right” mean nothing in the current context: the real division is between government-privileged plutocrats and the rest of us. What you have to ask yourself is this: which side are you on?

If I can make one more recommendation, do yourself a favor and take the time to read the post up now by funkygal dealing with the corrupt ratings agencies now threatening a downgrade of U.S. credit over the faux debt ceiling crisis.

Of course as we all now belatedly realize, the only  actually imminent armageddon was to the TBTF bank/casinos, which has now, through the black arts of alchemy, been transmuted into armageddon for us in the working classes. None of us untouched. None of us not knowing someone who has been out of work forever, or been foreclosed upon. Millions more of us now without health insurance; when the baseline starting point number three years ago was already truly unconscionable for such a country as ours that once held such promise. Millions more of our children going to bed at night hungry.

Well, apparently our “shared sacrifice”  has not yet been nearly enough. Remember those toxic assets?

This morning Katya Wachtel in the Clusterstock column of “Business Insider” reports that Bank of America stock is tanking yet again.

It’s been an ugly few months for Bank of America.The stock has been dropping steadily through 2011, with July particularly bad. It nosedived this morning on news that the bank may “may have to build its capital cushion by $50 billion… as mortgage losses drain funds,” Bloomberg reported.The stock is hovering around $9.60 right now.

That means that CEO Brian Moynihan’s promise to increase dividends will probably also be withdrawn, causing more discontent among shareholders who are already being warned to prepare for some ugly writedowns when BofA reports Q2 earnings tomorrow.

That $8.5 billion settlement with investors in June wasn’t the only mortage-related bad news from last quarter. In the second quarter alone, “expenses tied to soured home loans may total $20.4 billion… pulling the bank further from capital ratios demanded under new international standards,” Bloomberg reported. “The gap may equal 2.75 percent of risk-weighted assets starting in 2013 — at about $18 billion for each percentage point — crimping Moynihan’s ability to raise dividends and repurchase shares.”

Even after all we’ve done for the TBTF bank/casinos, or more accurately put, after all we’ve allowed to be done to us, and even after our “best congress money can buy” decided to shitcan the “mark to market” rules for banks (that’s where if you are a bank you aren’t allowed to lie about the value of the collateral you hold paper on) we nonetheless find ourselves at the part where if this were a post about Fukushima, Lobster would now be telling us about the breach of the containment vessel.

I am unable to see how things could be much worse for most of us, and if it isn’t yet for you, the plutocracy hasn’t forgotten about you, rest assured they were busy making their plans to reach out and touch your life as well.  I hope that Ken Lay’s Lewis’ golden parachute lands the sorry fucker in an alligator infested swamp, and I hope that this crack in the plutocracy’s polished veneer is but the beginning of the collapse of these TBTF obominations of dispensable human suffering.

Don’t let the bastards grind ya down.

October2011

Stay Strong.

Robert Alexander Dumas

Robert Alexander Dumas

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