Extortion

There are various definitions of extortion, and it easy to find many on the web.  One that is relevant today defines extortion as, "using threats or other coercive means to obtain money from others."

Isn't this what is going on with the Investment Class and their minions on The Street and in the Media right now?  Each time the Federal government sidles towards what needs to happen -- the FDIC shuts down the mismanaged banks and forces write-downs, policy, and management changes, for instance -- there is a great hue and cry among the Minions.  The major indices lose a few hundred points of value.  The Feds back off... or divert more cash into the coffers of the wealthiest of the wealthy through TARP funds or some other flawed vehicle... or both.

If it feels like / looks like / smells like extortion, then it probably is extortion.

What needs to happen?

Civil suits.  Lots of them.  All of the VP and above employees of ALL of the big financial institutions need to be slapped with major, ruinous civil lawsuits.  The purpose of these suits needs to be punitive and harsh.  The lawsuits must turn these spoiled princes into paupers and redistribute their wealth to individual investors.

The spoils should be divided by going to those investors with the smallest net worth as measured by their portfolio value (in absolute dollars), their real estate holdings, their cash and savings, and their gross income over the past five years.

The government cannot do this.  The top tenth of a percent is simply too powerful. But individual attorneys can and should take up this cause. There should be a torrent of lawsuits that make the mild shareholder "rebellions" of the 1990's look like a spring shower.

Just a thought for a rainy afternoon here at the edge of the continent.