Our taxes fill S&L coffers Behind the Lines

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retired lieutenant colonel. What has he done to deserve his pension and retirement in the city of Aptos? The last time I looked, it was the working people (not the rich) who were paying the bill for our retired lieutenant colonel.

"Racketeer for capitalism"

Now Phelps may believe that he has somehow contributed to the well-being of the U.S.A. by fighting foreign enemies. But I would remind him of the famous words of U.S. Marine Commander Smedley Butler when describing his contribution to the U.S.A.

Butler declared: "I spent 33 years [in the Marines] ... most of my time being a high-class muscle man for Big Business, for Wall Street and the bankers. In short, I was a Closing date:

July 28, 1990 military will get a big share; ultralethal B-2 bombers cost $800 million a plane!

And then, hundreds of billions will be needed to "rescue" the savingsand-loan industry. The Resolution Trust Agency (RTA), the government's handout office for the bankers, complains that it will soon be broke unless Congress authorizes more money.

The only trouble is nobody knows how much the bailout will eventually cost. One trillion dollars, has now been mentioned. The figure keeps going up.

The RTA has taken control of hundreds of failing S&Ls so far. Federal agents now manage S&L assets that exceed in value those held by all but the very largest corporations.

Taking over the banks sounds like socialism. But this is socialism for people whose names are engraved on the doors of Wall Street banks and brokerage firms. All of the bad loans and inflated investments are to be kept profitable by means of federal subsidies. And who will pay the bills? Working people. You and me.

To see how the S&L racketeers operate with our tax money, let's take a look at just one case-the Silverado Banking, Savings and Loan Association. That's the Denver-based thrift connected with Neil Bush, the president's son.

After "discovering" financial wrongdoings at Silverado, the government delayed action until after George Bush was elected president. Then, a sale was quietly arranged to the First Nationwide Bank of San Francisco. In the first year, over a half-billion dollars were given in government subsidies to the new enterprise. Further subsidies will keep all of the money-losing assets profitable for another 10 years. These subsidies, combined with special tax advantages, allowed the merged S&L to make a profit of $48 million in one year. That's a hefty profit, representing a 50 percent return on First Nationwide's investment. As they say, some thieves rob banks, and some thieves rob with a bank!

Actually, a growing body of evidence links Neil Bush and the Silverado gang (as well as 21 other failed thrifts) with the more usual Michael Schreiber activities of big-time criminals, including drug-running and gun-running to the Nicaraguan contras. According to a Houston Post article of March 11, 1990, Silverado and four of its major borrowers "all had connections to individuals or S&Ls in Texas that did business with organized crime figures or CIA operatives." The Post linked Silverado with Robert Corson, a Texas developer and "money launderer" for the CIA, and Herman Beebe, a Louisiana Mafioso. Shouldn't Congress investigate this connection between the Mafia, corrupt businessmen, and undercover operatives? Not a chance. President Bush was almost snared by Contragate, despite the sizable coverup. He's liable to meet his downfall in Silverado-gate. Aside from the Houston Post, the mainstream press has found this story too hot to handle. "Behind the Lines," however, will follow the story as it develops.

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LY Sun Rui-jun and Rodrigo Ibarra Heidi Wallentine Stefan Wolanski RAL ASOCAKE Karen Wald and Chris Nteta Sarah Nelson All photos by MayMay Gong/Socialist Action Esteban Volkov

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