It is slowly dawning on the American citizenry, after Secretary Geithner’s latest performance, that our government has been captured by the financial industry. We are now so deeply in the territory of WTF phenomena that we need to look around to get our bearings. Here is what has been established so far in this incredible journey:
1. The entire United States financial sector is insolvent, i.e., its liabilities exceed its assets.
2. The US government has decided to place unlimited taxpayer resources at the disposal of the financial industry to restore its solvency.
3. The US government has refused to demand any management changes in the corporations that have become insolvent and dependent on taxpayer subsides.
4. The very same people who created the financial disaster remain firmly in control of insolvent institutions.
5. The highly-paid managers who created the financial disaster continue to award themselves huge salaries and bonuses, using taxpayer funds.
6. The US Government refuses to nationalize insolvent institutions, declaring that it cannot do a better job of managing them than the incompetent executives that caused the disaster.
7. We are rewarding and reinforcing failure on an unprecedented scale.
8. Nothing has been done that will prevent a reprise of this financial disaster.
9. The US financial industry has effectively hijacked the Federal Government, and is now looting the Treasury.
10. The American public is helpless to alter the decisions of its elected representatives, who insist on protecting the wealth of financial industry executives and stockholders at all costs.