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xchrom

(108,903 posts)
Mon Sep 16, 2013, 06:58 AM Sep 2013

We've Got a Billionaire Bailout Society—And the 99% May Never Recover From It In Our Lifetimes

http://www.alternet.org/economy/weve-got-billionaire-bailout-society-and-99-may-never-recover-it-our-lifetimes

The odds are that we in the bottom 99 percent may never see a recovery in our lifetimes. That's because our nation has evolved into something entirely new: a billionaire bailout society.



We are entering a disastrous new era in which all the economic gains go to the top 1 percent, according to data from economists Emmanuel Saez and Thomas Piketty. They report that, "Top 1% incomes grew by 31.4% while bottom 99% incomes grew only by 0.4% from 2009 to 2012. Hence, the top 1% captured 95% of the income gains in the first three years of the recovery.... In sum, top 1% incomes are close to full recovery while bottom 99% incomes have hardly started to recover." (In 2012, $394,000 is the cutoff to make it into the top 1 percent.)



We see in vivid detail what the new American order looks like. The top 1 percent live in another economic universe of high finance that sucks the wealth from the rest of us. In their world, banks (owned by and for the top 1%) are able to grow larger and larger so there is no chance they will be allowed to fail, even after these same banks took down the economy. (In 1965 they had assets equal to 17% percent of the U.S. economy. Today it's more than 65% percent.)

Free from any meaningful controls, financial gambling (called proprietary trading in polite circles) is now the dominant activity within our largest banks. In fact, in these too-big-to-fail banks, more money goes to financial gambling than to loans for businesses and consumers. These are not banks—they are rigged casinos for the rich. The upside from these corrupt pursuits are kept by the top fraction of the 1 percent, while the 99 percent hold the bag when those phony bets crash the economy.
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We've Got a Billionaire Bailout Society—And the 99% May Never Recover From It In Our Lifetimes (Original Post) xchrom Sep 2013 OP
k/r marmar Sep 2013 #1
kick (nt) scarletwoman Sep 2013 #2
I know I won't. KG Sep 2013 #3
K&R ... Who will serve them? MrMickeysMom Sep 2013 #4
well, they can still afford to have kids. nashville_brook Sep 2013 #5
The 99% won't recover in our lifetimes? Brigid Sep 2013 #6
I agree that we're in a particularly bad time for this, but... Orrex Sep 2013 #7
I agree, this is older than dirt Hydra Sep 2013 #8
THis does NOT happen by accident. bvar22 Sep 2013 #9
The bailout is continuous and goes by the name "Quantitative Easing" kenny blankenship Sep 2013 #10
There's a cure for that MNBrewer Sep 2013 #11

MrMickeysMom

(20,453 posts)
4. K&R ... Who will serve them?
Mon Sep 16, 2013, 07:39 AM
Sep 2013

Who will build fortresses to shield the super rich?

What will be the "great equalizer" in our lifetime against the bankers, who are continually allowed by those in their pockets in Washington?

Rhetorical question?

Brigid

(17,621 posts)
6. The 99% won't recover in our lifetimes?
Mon Sep 16, 2013, 09:27 AM
Sep 2013

I don't think the 99% will ever recover, period, unless we find a way to start throwing banksters in jail.

Orrex

(63,218 posts)
7. I agree that we're in a particularly bad time for this, but...
Mon Sep 16, 2013, 09:40 AM
Sep 2013

Throughout human history, the entire function of society has been to enrich the wealthy at the expense of the poor. There have been small populations where this isn't the case, but overall these are statistical anomalies.

We can quibble about the percentages, but unless we undertake a fundamental change in the nature of society, we will continue to be a billionaire bailout society long after the death of anyone now living, just as it has been since long before the birth of anyone's great-grandparents.

Hydra

(14,459 posts)
8. I agree, this is older than dirt
Mon Sep 16, 2013, 12:11 PM
Sep 2013

The problem is that there was that statistical anomaly for a little while. I grew up during the Reagan era, so I never saw it, but I do see the smug and self righteous generation that did very well and wonder why we aren't now.

We must be lazy whippersnappers or something.

bvar22

(39,909 posts)
9. THis does NOT happen by accident.
Mon Sep 16, 2013, 12:35 PM
Sep 2013

It is the DIRECT RESULT of 30 years of Republican & Republican-Lite
"NeoLiberal" Economic Policy.



You will know them by their [font size=3]WORKS.[/font]

kenny blankenship

(15,689 posts)
10. The bailout is continuous and goes by the name "Quantitative Easing"
Mon Sep 16, 2013, 01:01 PM
Sep 2013

85 Billion Dollars a month, every month of FRB purchasing of "financial assets" from our busted bankers. That 85 billion goes straight into bankster speculation on stocks and commodities, making the already rich richer still. Every time the Fed discusses the possibility of gradually ending this endless outright donation of free money to the banks, the stock market begins to cough and sputter. Then the QE "tapering" talk ceases.

Somebody has to pay for this speculation, and that's you people. You pay for it in inflation in the price of everyday consumption items - food, gas, rent. You know: all the stuff the government refuses to include in its Consumer Price Index statistics. You pay for it in a currency that buys less of foreign goods and services than it otherwise would. You pay for it in the massive lost opportunity costs (to you) of an economy that is organized around the furtherance of financial swindling rather than the production of real goods and services. You pay for it in lingering high unemployment, pervasive marginal employment and a regime of depressed wages.

The Fed could have decided to arrange its bailout of the economy in a way that would reflate the crashed consumer demand - a disaster which resulted predictably from decades of stagnant wages and the increasing accumulation of private debts. They could have cut checks for every household in the US -$85 billion a month- and said spend it wisely, spend it unwisely, but spend it quickly. Instead, they decided to hand it all out to the banksters. The accelerated, record setting high stratification of wealth and income in our society now is the direct result of that policy. And what does the Democratic Party and its leadership have to say about all this? What did they have to say while the crisis was in full crash mode? What have they said right along? Their only response has been to try to put Humpty Dumpty back together just as he was in 2007. In other words, they doubled down on the policies and priorities that caused the crash in the first place and the result is that wealth and income stratification have INTENSIFIED, not abated or reversed direction.

You could say that their total worse-than-uselessness is due to their ignorance. But I would say that their ignorance is all due, rather, to KNOWING. They know well which side of the bread is buttered, and also who butters it for them.

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