Politicians like Judd Gregg(R-NH) and Ben Nelson(D-NE) are fighting to keep the crooked $600 trillion derivatives market unreformed.
If there is creeping socialism in the U.S. it is the kind of crony corporate socialism that Bush/Cheney practiced and Republicans Like Gregg, John Boehner(R-OH) and Senator Mitch McConnel(R-KY) want to make sure stays the ways its been for far too long. If you think this Great Recession is bad just wait for the next one that will happen because Conservatives do believe in class warfare. They have declared war on the middle-class.
Politicians like Judd Gregg and Ben Nelson are fighting to keep the crooked $600 trillion derivatives market unreformed. The dirty not-so-little secret about derivatives? In their current form, they are basically government insurance where the bailed-out mega-banks get to keep the premiums but the taxpayer pays the claims.
Senator Gregg points out that good, honest American companies like Harley-Davidson and Caterpillar use these derivatives to hedge against things like currency changes and costs of materials. Hedging against price fluctuations is something that any smart business would want to do and should be encouraged.
What Senator Gregg doesn't point out is that companies can already do this WITHOUT secret derivatives. They just have to buy them on a market exchange or, if it's something unusual or exotic, go to an actual regulated insurer like Lloyd's of London. If Mariah Carey can get her legs insured, I am pretty sure that Caterpillar can find a regulated insurer to cover a seasonal drop in steel prices.
The reason no one wants to cut this scam off is because it works out great for everyone except the taxpayer/sucker who actually pays the claims. The buyers get cheap insurance backed by the US government, the banksters (the big four: JPMorgan Chase, Bank of America , Citigroup and Goldman Sachs) get to keep the premiums and WE THE TAXPAYER pay the claims -- and trust me, AIG is just the tip of the iceberg (note: Fannie + Freddie) in this ongoing derivative bailout!
Just because a few good, American companies like Berkshire Hathaway (major stockholder: Ben Nelson) like getting a sweet deal from the taxpayer doesn't mean that we should keep giving them one. This is especially true when CEOs like Warren Buffet already knew they were a deal too good to be true when they bought them. It is time for us to cut off their welfare checks.
Too many politicians in this country have decided that socialism buys votes, especially when their generation doesn't have to pay for it. But thankfully, there are politicians willing to keep our great country from falling further into this abyss and are willing to put an end to this ridiculous taxpayer giveaway.
Call or write your Senator and tell them to support real derivative reform or that they will pay the consequences come election time.
