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Big banks binge on Bush-Obama venture socialism (Obama uses taxpayers $$ to cover the 1% He hates?)
Washington Examiner ^ | Sunday November 13, 2011 | Timothy P. Carney

Posted on 11/13/2011 9:40:48 PM PST by Bigtigermike

Largely out of the media spotlight, the federal government operates a network of financial subsidy programs that benefit big banks by putting taxpayer money at risk. And President Obama, that self-styled populist scourge of Wall Street, is increasing this racket of private profit and public risk that Sen. Jim DeMint (R-S.C.) aptly dubbed "venture socialism."

In its latest act of venture socialism, the Obama administration has offered a novel taxpayer backstop to General Electric, the multinational industrial conglomerate that is famously close to this administration, and that spends more on federal lobbying than any other company.

[...]

Here's how to understand what's going on: Imagine I'm a shoe exporter. I ship shoes to stores in Europe, and then I wait a few weeks to get paid by the stores. But what if more orders come in, and I need to restock the shoes right away, before I get paid for my last shipment? I could just borrow from a bank. But another option is that I can just sell my invoices, in effect, to the bank. If the shoe stores owe me $1,000, I might sell Citibank, for $950, the right to be paid by those shoe stores. That's called supply-chain finance, and it's a quintessential capitalist arrangement.

But in the midst of this commerce among banks, exporters, and importers, Barack Obama has inserted the unwitting U.S. taxpayer. As part of his Export Initiative aimed at doubling U.S. exports in five years, the Supply-Chain Finance Guarantee Program to guarantees 90 percent of the banks' exposure. In our hypothetical example, if the European shoe stores welched, the U.S. taxpayers would cover 90 percent of Citibank's loss.

(Excerpt) Read more at campaign2012.washingtonexaminer.com ...


TOPICS: News/Current Events; Politics/Elections
KEYWORDS: corruption; cronyism; democrats; obama

1 posted on 11/13/2011 9:40:52 PM PST by Bigtigermike
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To: Bigtigermike

Is this what the OWS crowd is fighting for? Suckers!!


2 posted on 11/13/2011 9:44:48 PM PST by Jim Robinson (Rebellion is brewing!! Impeach the corrupt Marxist bastard!!)
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To: Jim Robinson; All


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3 posted on 11/13/2011 9:48:28 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Bigtigermike

the Supply-Chain Finance Guarantee Program

Every day its something else to put US at risk
and Obammy’s friends get richer.


4 posted on 11/13/2011 9:54:05 PM PST by Gasshog (going to get what all those libs asked for, but its not what they expected.)
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To: Jim Robinson
"The green-energy loan guarantee programs that benefitted Solyndra are also bank subsidies.

For instance, the Energy Department this fall guaranteed $1.4 billion loan for solar companies NRG Energy and Prologis to install solar panels.

But it wasn't the solar companies applying for the subsidy -- it was Bank of America, through the Financial Institutions Partnership Program created by the stimulus bill, which asked -- and received -- this taxpayer-funded gift from the Obama administration.

Taxpayers will repay B of A if this $1.4 billion solar investment doesn't pan out.

But what are the odds of a stimulus-subsidized solar venture flopping, right?"

5 posted on 11/13/2011 9:57:17 PM PST by NoLibZone (Sexual Harassment:men touching themselves while wearing only jock straps,gyrating on a parade float)
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To: Jim Robinson; All

What is needed is a stockholders revolt. When the market crashed in 2007/8, GE crashed from $50 per share to $5 a share and then crept up to a range between $15 and $20 to this day. Meanwhile the top 7 officials were being paid from $11 to $22 million for those years and 2009. In 2009 a proposal was offered for a stockholder vote to subject the executives to a Stockholders Advisory on Executive Compensation. Needless to say the Execs urged us to vote against it. Needless to say I voted for it.

In 2007 the top CEO of Goldman Sachs was paid around $34 million. In 2008 the salary was raised to over $70 million. At the 2008 GS stockholders meeting the stockholders outraged that the top three executives all had salaries above $65 million voted 43% for a Stockholders Advisory on Exec. Compensation. While not a win, it was close enough to scare the CEO salary in 2009 to be lowered to around $26 million. IN 2010, I had a very hard time trying to find out what the CEO salary was for that year. Cowards!!! STOCKHOLDERS, REVOLT!! Keep government out of your corporations, do it yourself!!


6 posted on 11/13/2011 10:11:13 PM PST by gleeaikin
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To: All

bkmrk


7 posted on 11/13/2011 10:20:42 PM PST by jcsjcm (This country was built on exceptionalism and individualism. In God we Trust - Laus Deo)
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To: Bigtigermike

Just another example of something the US gov’t has no business being involved in. Guarantee this, bail out that, make whole this....Just sickening


8 posted on 11/13/2011 10:28:20 PM PST by paul51 (11 September 2001 - Never forget)
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To: FReepers
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9 posted on 11/13/2011 11:22:34 PM PST by onyx (PLEASE SUPPORT FREE REPUBLIC BY DONATING NOW! Sarah's New Ping List - tell me if you want on it.)
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To: gleeaikin

CEO’s just trying to keep up with professional athletes and Hollywood stars after all...


10 posted on 11/14/2011 12:10:47 AM PST by wiggen (The teacher card. When the racism card just won't work.)
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