Is Obama a Socialist? Big Banks made more profit in the first 2½ years of the Obama administration than they did during the entire Bush administration, industry data show.
Those wacky conservatives claim Obama is a socialist or a martian or whatever. One thing is certain is that if he is a socialist he is the worse ever. he has turned Marxism upside-down helping the trend that started with Ronnie Reagan, redistributing income upward to the wealthy. Could the reality be that Obama is, at least on economic issues, to the Right of Reagan.
The largest banks are larger today than when Obama took office and are returning to the level of profits they were making before the depths of the financial crisis in 2008, according to government data. Wall Street firms — either independent companies or the high-flying trading arms of banks — are doing even better. They’ve made more profit in the first 2½ years of the Obama administration than they did during the entire Bush administration, industry data show.
....A recent study by two professors at the University of Michigan found that banks, instead of significantly increasing lending after being bailed out, used taxpayer money to invest in risky securities to profit from short-term price movements. The study found that bailed-out banks increased their returns by nearly 10 percent as a result.
....“The too-big-to-fail banks got bigger profits and avoided failure because of trillions of dollars of loans directly from the Federal Reserve,” said Linus Wilson, assistant professor of finance at University of Louisiana at Lafayette. “Today their profits are boosted by lower borrowing costs because their managers and creditors expect a Fed lifeline when markets get jittery.”
Banks have also benefited from the massive increase during the recession in unemployment insurance, which is a joint federal and state program. Increasingly, banks offer debit cards to the unemployed to collect their benefits. These debit cards carry a range of fees that bolster bank bottom lines.
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