What's Good for the Goose…

Isn’t always good for the gander.  When thousands of people were defaulting on mortgages they couldn’t afford, the financers’ attitude was that those people were the victims of their own poor financial judgement, decisions and planning.  Now the same crowd, more or less, is up to its own eyeballs in financial free fall, but the same people, John and Jane Doe taxpayer who lost their home on the mortgage they couldn’t afford are now expected to bailout the Wall Street crowd because of Wall Street’s, well, poor financial judgement, decisions and planning.  Join me in a big “D’oh!” if you’re scratching your head too.

I must admit that I, like Markos Moulitsas Zuniga, think Rep. Peter DeFazio (D-OR) is onto something with this idea:

a new government fee of .25 percent of every stock transaction to ensure that the government can recoup funds to pay for the aid that it provides to lenders. “If this is truly such a catastrophe, I don’t see how anybody can object to a one-quarter of one percent fee,” DeFazio said. Others who attended the session said that proposal seemed to be gaining little traction.

Senator Bernie Sander (I-VT) proposes (hat tip to kos, again):

a “five-year, 10 percent surtax on income over $1 million a year for couples and over $500,000 for single taxpayers,” which he says he would “yield more than $300 billion in revenue.”

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One thought on “What's Good for the Goose…

  1. Behind the BailoutBack in 1987, Fortune Magazine attributed the Market Crash to failures in the derivatives market. This story originally ran in March, 1994 and was republished yesterday on Fortune’s web site as: The risk that won’t go away – Sep. 25, 2008.

    In 2002, Warren Buffet stated: “Large amounts of risk have become concentrated in the hands of relatively few derivatives dealers … which can trigger serious systemic problems”
    –BBC NEWS | Business | Buffett warns on investment ‘time bomb’

    Notice the exponential growth trend in the value of world derivatives trade:

    (see http://www.xanga.com/Buddha_Frog for graphic)

    Dec. 2007: The Bank for International Settlements (BIS) semi-annual OTC derivatives statistics report, for end of December 2007, shows $596 trillion total notional amounts outstanding of OTC derivatives with a gross market value of $15 trillion. –Derivative (finance) – Wikipedia, the free encyclopedia

    Sept 2008: “This is the derivative nightmare that everyone has been warning about,” says Peter Schiff –Buffett’s time bomb goes off on Wall Street | U.S. | Reuters

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