Wednesday, July 30, 2008

The Corporate Government

The Federal Reserve announced that it is extending the emergency loans to Wall Street. In an effort to ease the credit crunch the Federal Reserve will allow financial firms to continue to draw loans from the central bank into 2009 and allow them to extend the loan terms to 84 days from the current 28 day loan that are now available. The Federal Reserve in a statement said that it was taking these actions "in light of continued fragile circumstances in financial markets.

With this Federal Reserve Action the Financial institutions which have handed out billions of dollars in bonuses and regularly draw billions of dollars in salaries are now able to bolster their financial reserves and continue drawing their exurbanite salaries thanks to the Treasury Money of the People of The United States. Meanwhile, these same companies are foreclosing on People's Home and charging up to 39.99% interest on credit cards. These Credit Card Banks can now borrow the money from the Government at less than 2% interest and charge you 39.99% interest. There is something inherently unfair about this situation. Again the super wealthy are living off the sweat of the working class and poor.

Where is Congress? Why is there no response from the Congress about this situation. The Federal Government is suppose to serve the People of the United States not the Corporations. At the very least the Congress should impose restrictions on these Corporate loans from the United States Treasury. There should be restrictions that any Financial Corporation taking a loan from the Federal Reserve cannot charge anymore than 10% above the rate at which they borrow the money. The Congress must act. They must write and pass legislation that again makes Usury a crime. Before the Reagan Administration there were Usury Laws in this Country, but because of the constant lobbying and contributions from the Financial Industry to our Politicians, we now have a Government that serves the Corporations and Screws the People. Senator Obama you are preaching change, address this issue, this is a change that is drastically needed now.
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