The Predator Class

The Senators of the Late Roman Empire stole wealth from everyone: the peasants, the middle class, the Emperor and the army, by avoiding taxes, sheltering those who couldn't pay, then enslaving them, and engineering corrupt deals with the army and the government.

Our selfish class has escalated the plunder of the rest of us to an order of magnitude that makes Roman Senators look like petty criminals in comparison.

Fraud permeated the housing market that collapsed in 2007-8; it was endemic at every level. But, the profits and risk escalated with each additional layer of resold, insured, sliced, repackaged, resold "mortgage securities." And where did the original money come from, the funds that underlay this whole wobbly house of cards? Mortgage payments, an increasing number of which were either sub-prime or of questionable soundness, with their fraudulent enticements of low starter rates and escalating payments, no money down but higher and higher interest rates.

The money that underpinned the great mortgage bubble came from the poor, and working middle class. Through bank swindles on those loans, the people were tossed out of their homes and the banks were left holding huge numbers of foreclosed properties.

This wasn't a great deal for the banks, initially, but before the crash, it transferred billions of dollars from the poor and near poor to the very, very rich. In the bailouts, the government handed the banks billions more, so that even if they were left holding hundreds of thousands of homes they couldn't sell, they were able to resume their speculation and create huge profits, mostly out of thin air--and made-up money.

As for the people thrown out of their homes, in many cases for clearly fraudulent reasons, they had nowhere to go. So, the collapse of the housing market, and of the financial system, threw millions out of work. But the so-called stimulus that was supposed to promote job creation--the green jobs touted by candidate Obama--was much too small, due to political timidity, to do much more than keep employment from falling off a cliff. It stabilized unemployment at below 10%. Since, it has slowly crept down to 9% or slightly lower (not counting discouraged workers).

Meanwhile, the bailed-out banks are profiting hugely, in the still largely unregulated financial markets. Corporations are posting huge profits, too, but hiring is very slow: employers would rather squeeze as much as they can out of existing employees.

As if to underline their client status to the banks and corporations, Republicans consistently advocate cutting corporate and high-earner taxes, while bewailing the huge debts incurred from similar tax cuts they adopted previously, and from their unfunded wars. To make up the difference, they propose draconian cuts to entitlements (running surpluses, so far) and to all programs serving anyone not rich.

Debtors prison has already resurfaced: will Republicans try to legalize serfdom next?