I came across an Article on the Dow Jones ‘MarketWatch’ website, ‘Bernanke's quiet skipper makes waves’, about the New York Fed President, Timothy Geithner. The man behind the scenes of the Bear-Stearns bailout.

He has been involved in most of the financial crisis’s that have hit Wall St since the Mexican Peso crisis. He is obviously a very intelligent and capable man. However, his one domestic solution seems to be using taxpayers money to bail out the banks.

The interesting aspect to the Article was the comments made. Essentially, we have heard that ‘Main Street is sick of bailing out Wall St’, but now the comments to the Article clearly show that the average man on the street is cottoning on, and the stench of corruption and greed is turning his stomach. The banks were put in chains after the 1930’s financial debacle. Then, two generations later a lazy and fat society allowed them to be taken off (another Greenspan legacy). Guy’s, the chains were there for a reason! We can now clearly see what that reason was: corruption in its broadest sense.

Having the Fed oversee the banks was like appointing a wolf to ensure fair play for Little Red Riding Hood. Munch, munch, munch.

The comments to the Article clearly speak for themselves, they show that the average person on the street is sick of bailing out Wall St. They are worth reading and can be summarised in the following comments:

Can't this action by the fed be distilled down to two simple thoughts:
1. Privatise profit.
2. Socialize loss

Some of us have been prudently pinching pennies for years and dealing with our losses in the global labor(sic) arbitrage game with great energy and flexibility. We lived within our means, paid our bills on time and did not make foolish investments. Then we see Bear Stearns execs running off with tens of millions in compensation and the taxpayers are going to foot the bill for this mess.

LINK - Bernanke's quiet skipper makes waves
N.Y. Fed's Geithner is steering Wall Street into uncharted waters

http://www.marketwatch.com/news/story/new-york-feds-chief-steers/story.aspx?guid=%7B0D8682ED%2D74B4%2D4144%2D85FE%2DF2214455F37E%7D&dist=MostReadHome

http://www.marketwatch.com/

Couldn't have said it better myself.

Very true but few want to talk about it fear maybe?
Shares in this firm bought for $100 US sold for $2US who pays? the debt is huge.
America is buying or trying to buy its way out of a recession if it fails or not The world pays not the get rich investors.
Can America trade for profit and charge its losses forever to tax payers and consumers?
Yep we are too apathetic to question such things.
Price of fuel goes up another ten cents helps pay those bills what next?
We have banks in this country lending money they do not have and demanding blood if we default.
Pay your bills get out of debt it is common sense trouble times are ahead if not now they are bound to come, they always do printing money is no answer.

Surely the banks,super funds and other financial institiutions can't be that stupid.The sub-prime mortage debacle fed off itself over inflating house prices.How could our super funds be so stupid thus buying into this fiasco?

There must have been widespread knowledge as to the flaws in these loans and thus widespread corruption in transferring the losses to the average punter.

They are saying Aust will move into recession at the end of this year,that is why Kevin is already cutting Govt spending so hard.People are in too much debt and this recession will bite hard.

I think that Kevin is trying to bring it on early in the hope that things will be improving come the next election.This is a big risk because he could be exacabating a very dire situation.This a time when we really need a great treasurer like Peter Costello.

Lucky for the Americans they have a right to bear arms.
But as ignorence is bliss and education for all is a pretend rule
for all, the smartest generation in this world will also be the shortest lived one.

"They are saying Aust will move into recession at the end of this year,that is why Kevin is already cutting Govt spending so hard." - Arjay

Correct me if im wrong, but I was always led to believe that when faced with the threat of a recession and crises of confidence the usual course of action is for the government to spend more & go into debt, rather than slash government programs for the sake of budget balance.

Our ability to manufacture & export needs to be sexed up in my opinion, instead of accumulating copious amounts of foreign debt, I mean if your want to talk about inflationary pressures on the prices of assets including housing and shares then look at the amount of money we owe to foreign financiers. Whats with the veil of silence on the issue?

It's all B.S. really