Sunday, October 2, 2016

Punishing the Middle Class

Deutsche Bank is reeling.  If the bank collapses, it will likely lead to financial panic in the Eurozone.  Why is Deutsche Bank reeling?  The SEC has imposed a find of nearly $ 5 billion on the bank, which was already in a precarious situation.

Who pays this fine?  Since the fine is for past misdeeds, only those currently at the bank or current shareholders will be paying this fine -- mostly middle class pensioners or after-the-fact investors are stuck with this bill.  Virtually no bad guys will share in the hit.  If you were guilty of any wrongdoing, you are long gone and will not pay this fine.  Just innocent folks pay this fine.

Fining corporations is essentially taxing shareholders and not the same set of shareholders that were there at the at the time of the alleged crimes.  Nope.  The new and innocent get tagged in this brave new Jack Lew, Barrack Obama, Barney Frank world.

Go get the innocent.  Go where the dollars are.  Let the guilty go unpunished.  That is the theme song of the Obama Administration. It's all about the money.  There is not a hint of justice in any of this.

Meanwhile the European economy braces for potential disaster, thanks to Barrack Obama.

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