Monday, June 17, 2013

Do not pity the banks, Harry. Pity the living, and, above all those who live without subsidies.

June 7, 2013
Seth Maloney
The banks have failed. No, we're not really going to hear it screamed on the streets, but the only profits they're making are the tens of billions in subsidies that taxpayers are shoveling into them every year.

3 cents of every tax dollar collected goes to subsidizing "too big to fail" banks

That's 3% of the total taxpayer pie going to help out an industry that already controls $9 trillion, or roughly half of the US economy. This amounts $83 billion, three-quarters of which goes into JP Morgan, Bank of America, Citigroup, Wells Fargo & Co, and Goldman Sachs. But what if those subsidies were taken away?
Seen below is a chart generated by Bloomberg, show the typical annual profit, values of subsidies, profits without subsidies, and the return on equity without a subsidy. The results are pretty sad.

(Source )

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