April 19, 2010

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You’re Welcome, Wall Street In a 1964 concurring opinion deciding Jacobellis v. Ohio, Associate Supreme Court Justice Potter Stewart wrote about “hard-core pornography” and his struggle to define it: “Perhaps I could never succeed in intelligibly doing so. But I know it when I see it.” Using Potter’s indisputable logic, it’s hard not to see something obscene in how Wall Street reaped massive profits and bonuses in 2009 — and continues to do so, as is clear from Monday’s announcement by Citigroup that it had earned $4.4 billion in the first quarter of 2010, which was even more than earned by Bank of America ($3.2 billion) and JPMorgan Chase ($3.3 billion) in the same period — merely 18 months after trillions of dollars of American taxpayers’ treasure was used to save a financial system brought to the precipice by Wall Street’s greed and irresponsible risk-taking. Goldman Sachs, which is facing a civil fraud suit filed by Washington regulators, is expected to report robust earnings Tuesday morning as well. How did this happen at the same time Main Street continues to suffer from an unemployment rate of almost 10 percent and from the worst recession in generations? Partly, this resulted from the original strategy of the Treasury and the Federal Reserve to first fix the banking system and then worry about repairing the wider economy. Hence, the $700 billion Troubled Asset Relief Program arrived in September 2008, followed by, in February 2009, the $787 billion stimulus program, or American Recovery and Reinvestment Act.

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I'm a watchman for Christ, looking on the horizon in expectation for the fulfillment of God's Word.

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