Who got our money? Our government won’t tell
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Several of us would like to know how much government money was given to which financial companies, manufacturers and people. When we add up the numbers, they only come to a small portion of the $800 billion the government has given out. Can you give us a complete list of all the recipients? We’ve written two congressmen, but they won’t give us a straight answer. Perhaps these people should be limited to one term in office. And what do you think of General Electric? I bought 150 shares when Mr. Buffett loaned GE money and received options on 135 million shares. It seems Mr. Buffett may lose a lot of money, because the shares have really fallen from $22 since then.
– E.P., Paducah, Ky.
Dear E.P.:
A year ago, we were staring in the face of a banking scandal/collapse that, if left untended, would have made the crisis of the Great Depression mere child’s play. Aided and abetted by venal greed, the large brokerages, big banks and mega-insurers played a “scorched-earth” game with trillions of dollars of public money. The American taxpayer took it in the gut while insurance executives, brokers and bankers were cumulatively paid hundreds of billions of dollars in bonuses and salaries.
The public is aware that billions of insane bonus dollars were paid to criminally corrupt corporate executives who almost destroyed our financial system. But the public is not aware that 32 hedge fund managers, each of whom earned over $500 million, and myriad lesser-paid executives who only earned a few million, paid taxes on their earnings of only 15 percent. When these fellows contributed huge sums to various congressional causes, Congress showed appreciation and passed a very special ruling that taxed those earnings at 15 percent.
So perhaps we need to limit our politicians to two terms, not one: one term in office and a second in jail.
Resultantly, the Federal Reserve created about $700 billion in stimulus money during the past dozen months to rescue the economy and small businesses. And try as I did, I was unable to obtain an itemized list of banks, insurance companies, manufacturers and individuals who benefited from the greatest giveaway in the modern world.
As taxpayers, we have a right to know who received our money, why the loans were made, in what amounts and for what collateral. However, Congress tells us that we do not have the right to this knowledge because it could “stigmatize and frighten” the taxpayer.
So if you want to know who received your tax money and how much, consider employing a lawyer to request this information under the Freedom of Information Act. I suggested this as an alternative and was told that the administration would refuse to release that information and cite “danger to national security.” Wow, ain’t that a jar of tightly packed premium pickles?
Yes, I’d be a buyer of General Electric Co. (GE – $16.17), which is way under Warren Buffett’s warrant price of $22.25. It could easily double and nicely increase its dividend in the next five to seven years.
Buffett has four years remaining to exercise his option. It was late September 2008 when he loaned GE $3 billion at 10 percent.
Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service
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