NEW YORK ( TheStreet) -- The financial system is on the brink of collapse after trillions in bad loans were issued by greedy bankers. If you were a U.S. political figure, would you: A.) Tell everyone to suck a lemon, and (maybe) let the economy implode. B.) Fire the bankers who made the bad loans, prosecute the guys who broke the law and guarantee a portion of the loans in a grin-and-bear-it show of good faith. C.) Reward the bankers who made the bad loans with billions of dollars in bonuses and guarantee every loan with U.S. taxpayer money (with interest, because we borrowed the money from China). If you answered C, then maybe you should run for office, support laws that funnel billions to insolvent companies, retire from politics and start working for one of the companies you helped bail out. Heck, that's what former Republican-senator Judd Gregg did ( newly hired by Goldman Sachs). But don't worry, the revolving door between Wall Street and government is just a "myth", and here are 10 actual myths that politicians want you to believe:
10. Quantitative Easing Helps the EconomyMake no mistake, quantitative easing is a gift to bankers and nothing else. Let's take a deeper look: Quantitative easing is when the United States' central bank, the Federal Reserve, buys U.S. Treasury bonds.
- Treasury bonds are a future obligation of the United States, paid out with Federal Reserve notes (dollars).
- Federal Reserve notes are a current obligation of the United States, redeemable for goods and services.
9. Republicans Are Fiscal ConservativesSince 1968, the U.S. national debt accelerated fastest under President Ronald Reagan until President Obama claimed this distinction. The national debt does not take inflation into account, so perhaps we should look at inflation-adjusted deficits instead. According to research by Dave Manuel, From 1946-2010: Democratic President
- Total Years: 29
- Average Inflation Adjusted Deficit: $150.73 billion
- Total Years: 36
- Average Inflation Adjusted Deficit: $202.28 billion
8. President Obama Is an Enemy of Wall StreetWhen he was on the campaign trail, then-candidate Obama had some tough words for those who repealed Glass-Steagall (the law that prevented banks from acting like hedge funds), calling the process of deregulating banks a "legal but corrupt bargain." But get a load of this:
- The two men who served as principal negotiators for banking deregulation: Gene Sperling and Larry Summers.
- The two men who President Obama appointed to become his top economic advisers: Gene Sperling and Larry Summers.
- Two guys who happen to be paid millions of dollars in consulting and speaking fees by "too big to fail" banks: Gene Sperling and Larry Summers.