Alphonse D’Amato Weighs In On the Bailout
In a piece published on his site Park Strategies, former New York Senator Alphonse D’Amato gave his two cents worth (or $800 billion’s worth, for that matter) on the latest series of bailouts for the nation’s struggling banks. Citing President Barack Obama’s quote that the economic troubles were caused by a “legacy of mismanagement and misplace priorities and “an era of profound irresponsibility,” Alphonse D’Amato went further, saying that it was “outright corruption” that should be blamed as well.
Alphonse D’Amato expressed grave concerns that the government was only throwing money at the problem without a cohesive strategy. He also shows little sympathy for the struggling banks. “When I analyze this country’s bailout history thus far, I wonder why we continue to be so concerned with saving the rich guy,” Alphonse D’Amato writes, “Enough is enough. Let them go into bankruptcy! For the little guy, the “moms and pops” of America who run your local deli, or dry cleaner, or hardware store, there is no bailout for them.”
Alphonse D’Amato is fairly harsh in his criticism for bailout recipients Citigroup and AGI. “Make no mistake about it,” Alphonse D’Amato writes, “The Citigroups and AIG’s of the world sold worthless mortgages and financial products … They are the greediest of the greedy. Their pompous executive teams, supposed great financial wizards, have made hundreds of millions in compensation.” Alphonse D’Amato goes on to say the actions of these companies “bordered on criminality” and expressed his disappointment that so many financial institutions did not protect the free market system and the small American investor.
But Alphonse D’Amato didn’t just put the blame solely on greedy financiers. He is also angry at how rating agencies such as Moody’s, Standard & Poor’s, Fitch, and others dropped the ball in the failure to see the sub-prime mortgage crisis. “This travesty could not have taken place without the total complicity of America’s rating agencies,” he writes. “To date, I have not read or heard about any comprehensive investigation relating to how these services … could have survived when they were stamping junk with a triple-A rating.”
Alphonse D’Amato is surprised there is no public outcry over the abject failure of these rating agencies. “This deception of the American people happened because the agencies did not insist on elementary standards for those who bought homes,” he says.
Lastly, he wants the government to stop using the American taxpayer as an “ATM machine” every time large institutions face failure due to incompetence, corruption, and greed. “Why save the banks and corporate America when small business owners, the mom and pop stores, the centerpiece of our communities, are going under? Who is bailing them out?” Alphonse D’Amato writes.
Alphonse D’Amato urges a comprehensive investigation of the rating system and its agencies, so that dishonest business practices will never again get a stamp of approval from trusted sources. He feels any bailout money should be going to small business and investors, not the large institutions. “If we are not helping and bailing out the average homeowner, the little guy on Main Street, why should we be bailing out the muggers of Wall Street?”
That’s a good question, indeed!
Article Source: Park Strategies
Additional Resources on Alphonse D’Amato:
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- Alphonse D’Amato is a proud Republican, but he respects his Democratic colleagues. In this piece, he refutes the “Republicrat” label.
- Poker Players Alliance Chairman Alphonse D’Amato speaks about the future of online poker.