When Will Wall Street Quit Being Stupid?

Jim Hightower

Jim Hightower Author, Commentator, America’s Number One Populist

The self-described “Geniuses of Wall Street” are being stupid. Again.

In 2007, their stupid schemes and frauds crashed our economy, destroying middle-class jobs, wealth, and opportunities. Far from being punished, however, the scofflaws were bailed out by their Washington enablers – so the moral lesson they learned was clear: Stupid pays! Go Stupid!

Sure enough, here they come again! Rather than investing America’s capital in real businesses to generate grassroots jobs and shared prosperity, Wall Street is siphoning billions of investment dollars into speculative nonsense – such as bundles of high-risk, subprime auto loans.

It works like this: Car dealers, eager to goose up sales, hawk new vehicles to lower-income people, offering quick loan approval, even to those with poor credit ratings. Banks – eager to hook more people on monthly car payments – okay these subprime car loans without verifying the buyer’s ability to pay. Then, a Wall Street bank’s investment house buys up thousands of these iffy individual loans, bundles them into multimillion-dollar “debt securities,” and sells them to wealthy global speculators. Last year alone, banks sold $26 billion-worth of these explosive bundles of car loans.

This is a gaseous repeat of Wall Street’s subprime mortgage bubble that burst a decade ago. The scam generates easy money at the start for speculators and banksters – but as more and more low-income buyers are unable to make their car payments, defaults build up and the whole financial bubble pops.

Wasting America’s much-needed investment capital on a scheme that intentionally puts people in cars they can’t afford with loans they can’t repay is not only stupid, but immoral… and it’s killing our real economy. Why are we letting elite Wall Street loan sharks do this to us?

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Reposted from Jim Hightower

National radio commentator, writer, public speaker, and author of the book, Swim Against The Current: Even A Dead Fish Can Go With The Flow, Jim Hightower has spent three decades battling the Powers That Be on behalf of the Powers That Ought To Be – consumers, working families, environmentalists, small businesses, and just-plain-folks. Twice elected Texas Agriculture Commissioner, Hightower believes that the true political spectrum is not right to left but top to bottom, and he has become a leading national voice for the 80 percent of the public who no longer find themselves within shouting distance of the Washington and Wall Street powers at the top. He publishes a populist political newsletter, “The Hightower Lowdown.” He is a New York Times best-selling author, and has written seven books including, Thieves In High Places: They’ve Stolen Our Country And It’s Time To Take It Back; If the Gods Had Meant Us To Vote They Would Have Given Us Candidates; and There’s Nothing In the Middle Of the Road But Yellow Stripes and Dead Armadillos. His newspaper column is distributed nationally by Creators Syndicate.

Posted In: Allied Approaches, From Jim Hightower

Union Matters

Biden His Time

On May 2, 2011, hours before I underwent brain surgery, news broke that Osama bin Laden had been killed by Navy Seals. “At least I outlived you, you son of a bitch!”

Sitting up, I had accidentally pulled several EEG leads loose from my partially shaved head. An alarm sounded. I apologized to the responding nurses.

I described that moment to Beau Biden a year later, after he led a group of veterans marching in a Fayetteville, North Carolina voter registration drive.

I was still catching my breath and wiping my brow when the Vice President’s son walked over and asked if I was doing alright.

“Yes sir, I’m fine, thank you.” Sketching a salute with my walking stick, I said, “We’ve got other things in common besides we’re both voting for your dad.”

“Is that right?”

“Yes sir. We both served in Iraq—and we both battled brain illness afterwards.”

“And here we still are.” Biden smiled and the genuineness of his expression touched my heart.

I offered a quick account of my medical marathon, including the night bin Laden’s death cheered me up, then identified myself as a 2012 Obama organizing fellowship selectee. I expressed my regret that due to medical setbacks I wasn’t able to do more for the campaign.

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Today, and Every Day

Today, and Every Day