Increasingly the US government is a transfer machine that takes money from one group of citizens and gives it to others.
The Eric Holder lawsuits against the financial service industry is a great example of wealth transfer from average Americans to the friends of Eric Holder.
When a financial service company settles a lawsuit brought by the Attorney General's office, who pays? Bad guys? Think again. The owners of the financial service companies are the payers -- not the bad guys. And, who owns the financial service companies? You do.
Long ago, whatever bad guys worked for these companies left for greener pastures. Very few folks who may have played a role in parlaying misleading mortgages are involved today with financial service companies. Even the owners of these companies are different.
It is, as if, someone who lived in a particular house on your block committed a crime, and the police arrested the person who bought the house from the criminal and who had absolutely no knowledge or participation in the crime. The real bad guy could be miles away, relaxing and enjoying the fruits of his/her crime. So, now the police come arrest an innocent person who just happens to be today's owner of the same house.
That's what Holder is doing. He is extorting money from today's owners by alleging a crime by yesterday's employees.
Note what is not happening. There are absolutely no charges or lawsuits against any individuals that perpetrated these so-called frauds. No, indeed. They will never be made to pay for these alleged crimes. Instead, innocent shareholders, many of whom may have bought the stock long after the alleged misdeeds occurred, will pay the Holder transfer tax.
So, who wins -- friends of Eric Holder -- mostly various political interest groups like Moveon.Org receive much of the money that Holder is able to extort from the average, innocent taxpayer.
Retirement funds bear the biggest brunt of the Holder transfer tax, since more than 60 percent of financial service companies are owned by the retirement funds of average Americans. Wonder what crime they committed?
So, large numbers of Americans will retire on a smaller pension fund thanks to the Holder transfer tax, while Holder's buddies live large.