Top Leaderboard, Site wide
October 21, 2014
Truthdig: Drilling Beneath the Headlines
Sign up for Truthdig's Email NewsletterLike Truthdig on FacebookFollow Truthdig on TwitterSubscribe to Truthdig's RSS Feed

Get Truthdig's headlines in your inbox!






Mad Pilgrimage of the Flesh


Truthdig Bazaar more items

 
Report

A Fox to Protect the Henhouse?

Email this item Email    Print this item Print    Share this item... Share

Posted on Sep 23, 2008
Paulson
AP photo / J. Scott Applewhite

Treasury Secretary Henry Paulson briefs reporters on the economy earlier this month at the White House.

By Robert Scheer

Does it really matter which party is in charge when it comes to bailing out the Wall Street hustlers whose shenanigans have bankrupted so many ordinary folks? Not if the Democrats roll over and cede power to the former head of Goldman Sachs, the investment bank at the center of our economic meltdown.

What arrogance for Treasury Secretary Henry Paulson—who the year before President Bush appointed him treasury secretary was paid $16.4 million for heading the company that did as much as any to engineer this financial travesty—to now insist we must blindly trust him to solve the problem. Paulson is demanding the power to act with “absolute impunity,” said Sen. Christopher Dodd, D-Conn., who admonished the treasury chief: “After reading this proposal, it is not only our economy that is at risk, Mr. Secretary, but our Constitution as well.”

Clearly, it’s a vast improvement to have Dodd in the chairman’s seat of the Senate Banking Committee, asking the right questions, rather than his predecessor, Texas Republican Phil Gramm, who presided over the committee in the years when the American economy, long the envy of the world, was viciously sabotaged by radical deregulation legislation.

Gramm, whom Sen. John McCain backed for president in 1996, pushed through the financial market deregulation that has brought the American economy to its knees. Maybe this time Congress won’t give the financial moguls everything they want, including a bailout for foreign-owned banks like Swiss-based UBS, where Gramm now hangs out as a very well paid executive when he’s not advising the presidential campaign of McCain, his old buddy and partner in crime. Oops, sorry, no crimes were committed because the deregulation laws Gramm pursued and McCain faithfully supported decriminalized the financial scams that have proved so costly.

Just check out the language of Gramm’s pet projects, the Gramm-Leach-Bliley Act of 1999 and the Commodity Futures Modernization Act of 2000. By preventing mergers between the various branches of Wall Street, the former act reversed basic Depression-era legislation passed to prevent the sort of collapse we are now experiencing. The latter legitimized the “swap agreements” and other “hybrid instruments” that are at the core of the crisis.

Advertisement

Square, Site wide
The legislation’s “Legal Certainty for Bank Products Act of 2000,” Title IV of the law—a law that Gramm snuck in without hearings hours before the Christmas recess—provided Wall Street with an unbridled license to steal. It made certain that financiers could legally get away with a whole new array of financial rip-off schemes. 

One of those provisions, summarized by the heading of Title III, ensured the “Legal Certainty for Swap Agreements,” which successfully divorced the granters of subprime mortgage loans from any obligation to ever collect on them. That provision of Gramm’s law is at the very heart of the problem. But the law went even further, prohibiting regulation of any of the new financial instruments permitted after the financial industry mergers: “No provision of the Commodity Exchange Act shall apply to, and the Commodity Futures Trading Commission shall not exercise regulatory authority with respect to, an identified banking product which had not been commonly offered, entered into, or provided in the United States by any bank on or before December 5, 2000. …”

Even some Republicans on the Senate committee expressed exasperation Monday with the swindles that they had voted for with such enthusiasm in the past, as well as with giving Wall Street yet another blank check. Sen. Jim Bunning, R-Ky., condemned Paulson’s proposal as an effort to “take Wall Street’s pain and spread it to the taxpayers.” He added, “It’s financial socialism and it’s un-American.”

He’s wrong on that last point, for what is proposed is not the nationalization of private corporations but rather a corporate takeover of government. The marriage of highly concentrated corporate power with an authoritarian state that services the politico-economic elite at the expense of the people is more accurately referred to as “financial fascism.” After all, even Hitler never nationalized the Mercedes-Benz company but rather entered into a very profitable partnership with the current car company’s corporate ancestor, which made out quite well until Hitler’s bubble burst.

Smell a rat if Congress approves the Paulson plan without severely curtailing CEO pay and putting a freeze on the mortgage foreclosures that are threatening to destroy the homes of millions of Americans.


Robert Scheer is author of a new book, “The Pornography of Power: How Defense Hawks Hijacked 9/11 and Weakened America.”

Click here to check out Robert Scheer’s book,
“The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street.”


Keep up with Robert Scheer’s latest columns, interviews, tour dates and more at www.truthdig.com/robert_scheer.



Get truth delivered to
your inbox every week.

Previous item: Obama Gets a Break on Race Issue

Next item: In Defense of Elitism



New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By NovaM, September 24, 2008 at 12:56 pm Link to this comment

You hit the nail on the head this time, Bob!

Deregulation IS the PERFECT CRIME - You simply buy enough greedy, dishonest (Republican) politicians (ok, there might be a few dishonest & desperate Dems, too) to go to Congress, to ELIMINATE THE LAWS THAT MADE THEM CRIMINALS IN THE FIRST PLACE!

That’s why deregulation can truly be called THE PERFECT CRIME!

Even Al Capone in his wildest dreams, could never imagine such a grand scheme to steal so much money from so many people on such a gigantic scale….and yet do it all….LEGALLY!

Thanks alot, you NeoCONMEN suns-o-bitches!

Report this

By Dr. Knowitall, PhD, PhD, September 24, 2008 at 12:53 pm Link to this comment

Fool me once, shame on you; fool me twice, shame on me.

Klein’s premise is that the Neocons either create a disaster or use a naturally made one as a way to rebuild from the ground, up their version of a perfect “machine.”

It would appear that everyone else is now on to their tactics. 

This may be a great time to remake this country, not as it might benefit the wealthy, but, brick by brick, in a way that honors the dreams, desires and needs of the middle class, what this country was founded to do.

Let the bastards bite the dust.  Start over and do it right. 

I bet if Obama suggested that this is a revolution of the middle class in the making and he’s delighted to be a part, he’d make points.

Indeed, when you think about the possibilities—having a new country to build and one that could have a AA as president, it is effing exciting!!

P.S.  I’m a whitie.

Report this

By KDelphi, September 24, 2008 at 12:48 pm Link to this comment

Frank—I saw it on CNN and other sites.

Sen. Obama is not going along with it , is he?

I dont say much about McCain—I just take it for grantred that most people that “read on the internet”
(LOL) know that he is full of it.

But, THIS is BS!!

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 12:48 pm Link to this comment

FYI

From Daily Kos,

“Investigators are probing investment bank Lehman Brothers and insurer American International Group, or AIG, for possible fraud, according to law enforcement officials.”

Possible fraud?  Something stinks in Wall Street, must be left overs from the Bulls.

Report this

By Theodore A. Rademacher, September 24, 2008 at 12:47 pm Link to this comment
(Unregistered commenter)

WHAT A JOKE THE ONE WHO WAS IN CHARGE IN THE 90s IS TO BLAME FOR ALL THIS MISS. YOU DEMOCRATS NEVER GIVE UP BUTTING THE BLAME ON SOMEONE ELSE WHEN YOU ARE THE FOX IN THE HEN HOUSE

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 12:40 pm Link to this comment

When I become King, I will declare real estate a non commodity and like health care a social right for every American to own one house, one car and a good medical plan for all. Call me the Commie King.

People should never leverage their homes, should never gamble and never build bridges that go no where. Accountably is off the agenda folks.

Report this

By Alan, September 24, 2008 at 12:38 pm Link to this comment
(Unregistered commenter)

The dictatorial and secretive provisions of
the original “Paulson” proposal have the
stench of some henchman like John Yoo on them.
Can early drafts be found in a waste basket
at the Boalt Law School on the Berkeley campus?
Berkeley, once a progressive school has
closed its eyes and slept just enough for
the body snatchers to snatch the place and
rob it of its soul.

Report this

By wish i knew, September 24, 2008 at 12:36 pm Link to this comment

Yep, the Dems will end up giving up more than they should, it happens every time. But I am so tired of being angry and I’m not going to play anymore.

There are some Dems who are complicit in the whole mess. I know. And there are many, I believe, who are just plain tired of beating their head against a brick wall and were hoping more than anything that they could put off dealing with these nightmares until there was a more reasonable administration to work with. I get that, and I can’t be angry at it. There is nothing that has been done in the last 8 years that can’t be undone in time. 

The biggest crock of shit we have all been sold is that we NEED massive corporations to have an economy. WRONG. The wealthy need massive corporations to amass obnoxious wealth and avoid paying taxes on it. Any non-billionaire who believes otherwise is nothing but an enabler, a wannabe, or unbelievably gullible. Our current administration, and the next neocon puppet show on deck, works against 97% of the people in this country at all times. And 97% of the vote should be going ANYWHERE but with the neocon camp. If only.

But there are still banks and credit unions in this country that are not leveraged to the hilt in bad morgage debt. And when the smoke clears those banks and credit unions will want to put their best foot forward and invest in local communities and small business, and new technologies. And that is when we can start to rebuild from the ground up. And maybe this time we will be a little smarter to protect ourselves from handing the keys to these companies over to the greedy bastards who will twist them into something sinister and destroy them.

There are still responsible corporations in this country that honestly want to be part of the solution.

There are many many people who are waking up to the reality that elections are no longer a joke and something to be ignored.

It’s great to be aware of who’s screwing us over. But we need to start giving attention to the people who want to be part of the solution. Refocus on what we can do for ourselves - think about becoming a small business owner.
Rather than focus on what you wish you had, focus on what you DO have, and then plan for where to go from there. Reach out and help people in your community. Give $5 to the charity of your choice. Teach your kid the value of contributing to your family rather than just earning an allowance to go buy crap.

Sorry, if you’re still even reading this, I’ll get off my soapbox now. I just woke up inspired for some reason this morning. This is awful, but it isn’t going to kill us. It will define who we become in the next handful of years. That is entirely up to us.

Report this

By Frank, September 24, 2008 at 12:09 pm Link to this comment

BREAKING NEWS on CNN

John McCain is is a panic!  He has just suspended hs campaign and asked for a delay in the Friday debate, to ‘work on the economy’.

Translation, he is plummeting in the national polls and knew he was going to get torn to shreds on the economy and needs to rewrite all his planned debate talking points.

This is not a joke. Turn on CNN

Report this

By Allan Gurfinkle, September 24, 2008 at 12:06 pm Link to this comment
(Unregistered commenter)

As I understand it, the housing bubble is the root source of the problem.

But, wait a minute, what has the effect of this bubble been?  It has been to rob the middle class.  For someone aspiring to join the homeowning middle class, , you have to devote a whopping percentage of your income just to pay the mortgage. The problem is not the loan rate, the problem is housing prices.

Yet, all the fixes we hear discussed are addressed to maintaining high house prices, by stemming foreclosures, etc.

So, the middle class will be forever impoverished.

Doesn’t compute to me.  Why not let the housing prices collapse, back to where they are supposed to be.  Persons who paid 500K for a 200K house can bail on the mortgate, and rebuy.

I understand that this will decimate the financial industry holding the mortgages, but, it seems to me that the goal, at least, should be to reduce housing prices, not maintain them.

Report this

By Larry Linn, September 24, 2008 at 12:03 pm Link to this comment
(Unregistered commenter)

How is it that all of the right wing regulators, that supported Phil Gramm and his Enron based economics, are now the whiners?
After Obama is elected President, I think that he should appoint Bill Clinton to resolve the economic disaster that President Chaney and Vice President Bush led this country into.
Senator McCain, we do not need another Teddy Roosevelt now, we need another Franklin D. Roosevelt.  As for Gov. Palin, there is no national office for Dog Catcher, even if you were qualified.

Report this

By Frank, September 24, 2008 at 12:01 pm Link to this comment
(Unregistered commenter)

Everyone of these bastards should be in jail staring with the President and the Vice President and the blatantly corrupt Congress! Democracy my ass! While people lost homes and thousands of workers lost jobs these pieces of crap continue to run this country into the ground and think some dog and pony show hearings with a speech from the dumbest man on the earth will make any difference! I couldn’t be more disgusted then to call myself an American! These bastards aren’t even worth my spit in their corporate corrupt faces, the whole lot of them! The American people are powerless and cowards for even allowing this kind of crap! Obama and McCain can kiss my ass too!

Report this

By Ellis, September 24, 2008 at 11:59 am Link to this comment
(Unregistered commenter)

This bailout is an attempt by the Bush administration to keep the ship from sinking just long enough to give McSame a chance to fool the idiot Amerikan voters and get elected in November. If this doesn’t work expect another false flag operation like 9/11 to occur in the near future.

Report this

By Eso, September 24, 2008 at 11:46 am Link to this comment

The enlightened world has for some time taken a ride free of charge on mother world. We created a virtual world. And the virtual world got out of touch with reality. And the virtual world collapses. Not even $700 billion can save it.

It is interesting to try project what would happen if Treasury Secretary Paulson fails to raise the bailout money. What if a collapse of the financial and economic world come together and now?

It is not only the U.S. that has been playing with fire.

Europe learnt nothing from WW1. Hitler and Stalin went each for their own kind “lebens raum” (for resources really). The Soviet Union did it by rapid industrialization, while at the same time keeping the people poor and dumbed down. The Soviet Union collapsed because its people were dumbed down. A few ten thousand experts cannot forever maintain a collossus at the expense of the intelligence of the majority of its population. It is the Soviet People who collapsed and took the government with them.

Hitler did it in too obvious a way and the whole of Europe suffered. But Europe learnt little from the experience. No great original thought came of the millions of deaths. Europe simply dumbed down to the more or less successful (up to the time) U.S. model.

The real causes of WW2 were ignored by the West as it entered upon post-colonial expansion binge in which it almost literally ate our planet’s crust—we are still at it. The plague caught on in Japan, India and China as well.

May not capitalism be in store for its own unique death?

Report this

By yours truly, September 24, 2008 at 11:12 am Link to this comment
(Unregistered commenter)

This attempt to bail out Wall Street at the expense of Main Street shows how, with the Bush administration, ideology trumps the common good every time

“Otherwise?”

“They’d be talking about public ownership of banking and finance.”

“Same goes for our health care system.”

“How is that?”

“It’s falling apart on account of there being a conflict of interest between what motivates the private sector, greed, and what health care is all about, human need.”

“The answer being?”

“A single health payer system such as Canada has.”

“And what role the marketplace?”

“In manufacturing various goods and widgets, perhaps, but to be avoided at all cost when it comes to health, finance and other social services.”

“And then what sort of world?”

“It’ll be up to us.”

Report this

By Voodooeconomix, September 24, 2008 at 11:08 am Link to this comment

No bailout!!! We need criminal investigation here. Martha Stewart spent six months in jail for lying about stock trades to Federal Prosecutors. I wonder what kinds of lies they’d hear from Paulson and company if the Feds started asking them questions. What did they know and when did they know it? What kind of fortune are they walking off with based on their knowledge of inside information? Paulson needs to recuse himself. He helped set up the house of cards on one side and now promises to help rebuild the fallen cards on the other. I’m sure we the people can find some reckless law breaking going on here. If the death squad lawyers can make torture and other war crimes legal I’m sure some creative thinking can devise some argument that would stick in court.

Report this

By Crimes of the State Blog, September 24, 2008 at 11:04 am Link to this comment

BETTER THAN ANY BAILOUT

Let’s Play the “Blame Game” Instead

Crimes of the State

Taxpayers, Americans, rational people, I have a modest proposal. Instead of spending $700 Billion to buy bad debt from the bank shark fraudsters, let us spend merely 1/2 of $1 Billion to build a new SuperDuper Prison(TM), and round up all the organized crime figures who are attempting to defraud the People of the United States of multiple generations’ worth of wealth.

Continued…
http://crimesofthestate.blogspot.com/2008/09/better-than-any-bailout.html

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 11:03 am Link to this comment

It has been brought to our attention that the plan is well thought out, for they had worked on it for several months?  Oh really so it was planned?

Report this

By yellowbird2525, September 24, 2008 at 11:00 am Link to this comment

and WHY do americans THINK that “they have it all”????? LOOK at Iceland (who’s people live longer & better); at Norway, Sweden, Denmark: the PEOPLE in the USA have NOTHING; let me repeat NOTHING at all to help them: the Indian tribes have NEVER received what was promised to them; Gov & politicians KEPT it all; the VETS same deal Lucille: some disabled vets have YET to receive a PENNY from being injured in Iraq; who by the way RECOGNIZED DICTATORSHIP & the FACT that the “freedom” they had HEARD ABOUT was NOT FREEDOM AT ALL! Because the folks at the TOP with the Corp’s who RUN the USA GOV KEEP IT ALL FOR THEMSELVES: and the people of course have NOTHING! and we are running around saying “everyone ought to be free” when in reality: YOU HAVE NEVER BEEN AMERICANS! Even Japan KNOWS the reality that Americans are enslaved! Good God! What the heck is it going to take to UNPROGRAM the LIES?????

Report this

By desertdude, September 24, 2008 at 10:56 am Link to this comment

Nothing but a ripp off of the American people by the
Bush Administration. We must reward the crooks for stealing from every American. Hey Republicans what happened to the Free Market system Welfare for the rich, but not for a single Mom raising a child.

GOOD OLD REPUBLICAN HELP.

Report this

By BobZ, September 24, 2008 at 10:56 am Link to this comment

If the worst case scenario is a recession, that may be worth the cost. This 700 billion dollar + bailout will lead to a huge increase in inflation, a further erosion of the dollar, and an inability to address any of the more pressing issues facing this country, like ballooning entitlements, and inadequate health care for millions of American’s. It may be time to send a message to Wall Street that you are not too big to fail. If you abandon prudent decision making, you must pay the penalty. George W. Bush has presided over one of the worst periods in American history, and has managed the greatest wealth transfer in history, by the destruction of the middle class, the creation of a service economy,  and the creation of a small super rich class. We are now back to 1929 and a Herbert Hoover type running on the Republican ticket. In 1932, American’s decided they had had enough of Republican style free market capitalism which brought the country to its knees, and elected FDR. We are at a similar crossroads today. Will we be conned by culture wars into electing McCain/Palin and regain our senses and vote for Obama/Biden. Obama will have the good sense to get us out of Iraq and bring our astronomical defense spending under control. He will also start the reregulation process and put leaders in charge who actually want to govern and are competent in their jobs. Obama will also restore respect for the U.S. Constitution and respect for our allies. These last two weeks have just made it painfully obvious that we really can’t afford four more years of the last eight years.

Report this

By yellowbird2525, September 24, 2008 at 10:54 am Link to this comment

Golly: the WEALTHY & “politicians” have been agressively removing laws protecting the people & look at credit cards: usury laws around almost as long as banking began: to protect citizens from high interest rates: finally took Fed Reserve head to declare them & the added fees CRIMINAL & FRAUD (deceptive business practices); of COURSE Congress has done nothing for HOW MANY YEARS NOW? Cuz THEY are the ones who SIT DOWN with CORPS & decide what to do to HARM the people next! added to THIS: they KNOWINGLY allow banks to go & BRIBE heads of colleges: to promote THEIR credit cards: pretending theirs is the best; give them credit cards with YALE or name of college on it; recommend as best for student loans etc; and so the PEOPLE thinking ERRONEOUSLY from the AUTHORITY figures: this is the best deal are in reality billed far more & additional fees: cuz THIS is the way CONGRESS works: criminally; this is extended to Govs; to counties & into the cities; and THIS is exactly how the “new” rebuild & renew” America will work; Our Gov has no shortage of $; nor do the weaalthy who have TAKEN it from the people: they have it all tied up in gold (amero) in offshore accounts; the meltdown is the SCENE: staged for YOUR benefit; while the UNSEEN: is the fact that they manipulate the people at will & keep all the $ for themselves: and THEY are the ones who will gobble up the land & houses for pennies; and of course the WATER RIGHTS not only of the USA but for every country: anyone not being bribed to go along there is civil unrest: just like down in S America where supposedly the US Ambassadors behind the plot to overthrow the Gov’s claim “we are trying to remove poverty” from the land. WAKE UP AMERICANS!

Report this

By Frank, September 24, 2008 at 10:46 am Link to this comment

Well some good news I just read on the Washington Post site. The Dems push-back pressure worked:

Report: White House Will OK Exec Pay Caps

The Associated Press is reporting that the Bush administration has accepted the idea of curbs on executive pay for the companies that participate in the $700 billion Wall Street bailout in exchange for passage of the bill.

The pay caps have been a sticking point. Democrats—and some Republicans—have argued that if a distressed company is bailed out by taxpayer money, then the top executives should not continue to make their multi-million-dollar salaries and receive hefty compensation packages.

Some have gone so far as to argue that the executives should make no more than the highest-paid government official.

The pay curbs would be a key pushback victory for the Hill against the White House. It now remains to be seen if the the administration will cave on the “blank check” issue: Will they get the entire $700 billion requested by Treasury Secretary Hank Paulson or will it come in installments, as championed by Sen. Chuck Schumer (D-N.Y.) and others?

In other news, the White House has just announced that President Bush will address the current crisis on television at 9 p.m. tonight.

—Frank Ahrens

Report this

By mike roloff, September 24, 2008 at 10:42 am Link to this comment
(Unregistered commenter)

Oh let me count the ways I love thee Bailout!
How loverly your eyes, the future beckons.
I wagered in Vegas, I went broke,
I cheated everyone, including the house,
now the City of Vegas is bailing me out,
I’m running straight back to the tables!
Oh what a scam
oh what a nation of sheeples.

VOTE WHITE-VAN AUKEN FOR REVOLUTIONARY CHANGE
http://www.wsws.org/articles/2008/sep2008/elec-s13.shtml

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 10:36 am Link to this comment

Distruction of the Constituion has been ongoing for many years, this may be the nail in the coffin. I also suspect this may be the Republican plan to dump the Democrats into their well contrived and tuned black hole.

Henery’s law:

“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”

Hmm? No accountability, fits right in with what we have been seeing for 8 years now. Well we always know, without a doubt,  we can always trust their integrity.

Report this

By Big B, September 24, 2008 at 10:20 am Link to this comment

Leefeller,

The problem with the shit hitting the fan is that it doesn’t just spray on the guilty!

That said, i don’t think there is any amount of money that will cover this dry cleaning bill.

The funny part about this whole mess is that, in six months to a year, nobody is going to remember that this started under repug rule. If Barry does win, he will need the guts to do radical changes to governing the nation that we desperatly need. A new New Deal.
If he doesn’t, the blame for this mess will ultimaltly be placed at his feet. We are americans with short memories. And in 2012, the repugs will be welcomed back with open arms.

Who here thinks Barry has the grapes to do what has to be done?

We know mccain won’t.
But maybe throwing this mess into the laps of the dimmos was the plan all along.

Anybody remember 1976?

Report this

By Kashilinus, September 24, 2008 at 10:06 am Link to this comment
(Unregistered commenter)

How much is seven hundred billion dollars? Enough to build a thousand World Trade Centers, give or take a little. Yeah. Really.

Report this

By Hammo, September 24, 2008 at 9:57 am Link to this comment

Scheer makes the point that our perspective or viewpoint about the Wall Street situation is a crucial element in how we percieve it and what we do about it.

Food for thought in the article:

Wall Street drama: Deliver the $700 billion, or the economy’s dead

AmericanChronicle.com
September 24, 2008

http://americanchronicle.com/articles/75325

Report this

By bogglesthemind, September 24, 2008 at 9:55 am Link to this comment
(Unregistered commenter)

Bernanke and Paulson (BP), and the whole gang of stooges in the Cheney/Bush camp, have taken what was not broken and fixed it.

The Fix is in.

Report this
tiresias's avatar

By tiresias, September 24, 2008 at 9:52 am Link to this comment

isn’t the threat of “financial fascism” better than the specter of global depression? let paulson, bernanke, cox and the rest of the moguls do what they have to do to avert a total economic meltdown. i’m hungry. i need food, clothing, shelter before i can indulge in such high-falutin’ notions like “financial fascism.”

Report this
uncleray's avatar

By uncleray, September 24, 2008 at 9:48 am Link to this comment

Feel free to disagree, update or change, the
following but this is how I see things playing out:

1 World looses faith in our financial markets
2. Money now invested in growing Economies - China,
  India
3. Dollar no longer the world’s “Benchmark Currency”
4. Manufacturing jobs moved overseas
5. We no longer make stuff ‘cause we graduate too
  many “Service Sector” workers
6. Only able to export raw materials-coal, timber, etc.
7. Presto !  Banana Republic

Thanks,  Bush & Congress !

Report this

By omniadeo, September 24, 2008 at 9:48 am Link to this comment

“Cheney, White House Chief of Staff Josh Bolten and presidential adviser Ed Gillespie are meeting this morning with House Republican conservatives, where a rebellion is brewing against the size and questionable free market credentials of the administration proposal.”

Exactly the way the Afghanistan and Iraq wars and the Patriot Act were sold.

“[White House Deputy Press Secretary] Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.”

Read that again. Was drawn up over previous MONTHS and weeks.

This is not a bailout plan. Not even a questionable one. This is a plan to subvert what’s left of the Republic and hand the average citizen over to the wealthy.

Many thanks to the George Washington Blog at http://georgewashington2.blogspot.com/2008/09/white-house-admits-it-drew-up-bailout.html

GW really does what Truthdig says it is doing: Dig for the truth. Truthdiggers! Stop obsessing over Sarah Palin and the distractions of the “campaign” and find out what is really going on. There is a slow but sure putsch going on right here in America.

http://georgewashington2.blogspot.com/2008/09/army-to-be-deployed-inside-us-as-part.html

Report this

By Ivan Hentschel, September 24, 2008 at 9:26 am Link to this comment
(Unregistered commenter)

Foxes and Hen Houses

I’ve been waiting several days for someone to say this, but no one has (just like this, anyway), so I will:

The Fox is not only IN the henhouse, he holds the mortgage on it…and it is an ARM, sub-prime. The Fox controls the water supply to the henhouse. The Fox controls the electricity to the henhouse. The Fox has the henhouse’ checkbook.  The Fox won’t let the roosters in and can’t understand why there are no fresh eggs. The Fox wants more eggs to sell to buy guns to protect the henhouse.

Any of the chickens in the henhouse that the Fox doesn’t eat, he screws. Paulsen wants to be a Fox and a Rooster and we will all be chickens if we don’t make Congress skin the bastard and make him into a fox stole. Even PETA would like that.

Ivan Hentschel

Report this

By 1bassman9, September 24, 2008 at 9:14 am Link to this comment
(Unregistered commenter)

This is a Zionist coup d’etat by Talmudists Bernanke and Paulson to bring the so-called Christian America to it’s knees because to not be a Jew means you are red meat for this vermin, nothing but chattel. The bailout is nothing more than blackmail engineered by Paulson and his ilk and will be used as another financial 9/11 to scare the citizenry to accept his proposals as well as his terms as the plunder America. If you recall, Rumsfeld on September 10, 2001, told the country 2.3 trillion dollars was missing and the very next day the WTC and Pentagon were attacked. The part of the Pentagon that was hit just happened to be the section that was auditing the missing 2.3 trillion dollars. Coinky-dink?
Never was this talked about again. Will we have another attack to push this agenda forward?

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 9:10 am Link to this comment

Oversight becomes apparent only after the shit hits the fan, then it becomes hindsight.

Report this

By yacovm, September 24, 2008 at 9:09 am Link to this comment

If the housing problem is the underline problem that is why we are willing to do the bailout, then why not just address that?
I have an idea that uses a different approach by coming in that back door. These banks that hold these useless notes on houses on over inflated priced homes why not just chop of a huge price off those houses, let people move in and let that effect trickle down to the price of every home in America? The banks will lose the people will also less but we will still stand.
I own a house and I am willing to do that

Report this

By Kwaayesnama, September 24, 2008 at 9:03 am Link to this comment

THE ISSUE IS THE PEOPLE THAT MCCAIN & BUSH OWE ALEGENCE TO

John McCain is in the pocket of oil companies.
John McCain is in the pocket of insurance companies.
John McCain is in the pocket of pharmaceutical companies.
John McCain in the pocket of the mortgage companies.
John McCain in the pocket of the banking industry.
Here is a list of lobbyists and employees of major companies working in major positions in the McCain campaign. It will answer any questions you might have about the people who are advising and influencing him.

http://mccainsource.com/corruption?id=0006

Report this
Leefeller's avatar

By Leefeller, September 24, 2008 at 8:55 am Link to this comment

Let’s see I will raise you a couple of ” bridges to no where”  add social security and a boat load of horse shit I call!.  So let me have the shit pot of money and I will make sure it goes to all the right places.

Seems like we need to get the rope out and start checking out those Swiss bank accounts.

Report this

By Kashilinus, September 24, 2008 at 8:31 am Link to this comment
(Unregistered commenter)

The subject of massive mergers has a close kinship to the turmoil that has developed. Approvals for mergers got to be pretty routine, the principals arguing that it is always a better deal for consumers because operations will be more efficient. Instead, we hae witnessed the emergence of gigantic entities that deserve a new name, not corporations, quite unmanageable, powerful enough to write legislation that suits their various purposes, and murky enough so all kinds of instruments pop up that fleece the public, enrich the operators at unprecedented levels, and as we witness now, endanger the nation. Our home grown terrorists. The Congress needs to put a ten year moratorium on mergers, and do some serious breakup of these monopolistic monsters. Look what s happened when Ma Bell was told to split up.

Report this

By Fahrenheit 451, September 24, 2008 at 8:15 am Link to this comment

@ Dr. Knowitall, PhD, PhD;

Yup, couldn’t agree more.
And, there is a conspiracy; I think the republicans know they’ll not get the white house this time and are doing everything they can to cripple the next president so he’ll have a one term presidency because he’ll take over a bankrupt country.  Thus the republicans will get it back and we’ll continue to be nothing more than the chattel we have allowed ourselves to become.  Dante would love this!

Report this

By Big B, September 24, 2008 at 8:07 am Link to this comment

Let’s face it kiddies, the congress will bitch and moan, then they will copitulate.
Then the price tag will rise, and they will sign a blank check.
By that time major airlines and all american auto companies will need a handout as well.
And then the first of the baby boomers will begin to retire, dumping their 401k stocks on the market, removing a massive amount of value from our financial system.
Oh yea! then there’s the climate that continues to warm because of overpopulation and over consumtion(of course, if the world economy goes to shit, nobody will have any money to consume with)
And all this has to be done on borrowed money!

The national and personal debt of americans has become a joke! Dick Cheney was right, deficits no longer matter. We don’t raise revenue, we just print money!
And that my friends is how nearly every major civilization has collapsed.
Hell, the bailouts for all the businesses in america that will need one is going to be in the Trillions!
And all that is leveraged on some astronomical future prosperity that we have never seen the likes of, and aren’t bound to.

The fat is the fire
Don’t worry, be happy!(and start hording canned goods)

Report this
G.Anderson's avatar

By G.Anderson, September 24, 2008 at 7:55 am Link to this comment

We’ve been told for the last 8 years that Education is failing, but we have no money to fix it.

We’ve also been told that our health care system has already failed, but there’s no money to do anything about it.

But, now Abracadabra, we’ve got 700 Billion to fix the idiots.

The same idiots, who engineered bankrucpy reform, and credit card reform, who enslaved college students to life long debt via student loans.

Their the ones who have been touting globalization, and free trade with the world, while sending our jobs overseas, and making it difficult for American’s to have any hope for their own future.

Big surprise, they wrecked our economy, and now they want the American people, to pay for it.

But we’ve already been paying for it, and suffering from it all along, but they never even listened to our suffering. Never saw our struggle, never did anything but took from us. And when we complained, about it they, called us whiners.

The corporations of this country, have done their best to dehumanize us, and through the Republican Party, they have gutted every worker protection, every enviromental protection, every protection for the consumer from the FDA, and the USDA.

So I say no, let them fail, let them crash to the ground, and shatter into a billion pieces, and I will pick up a shovel and bury them. I’m not afraid of a few blisters, or little hard work.

We don’t need them anymore. If they have any money at the end of this wreck, let the IRS hound them to death for every penny, just like it would do to anybody else.

Let them spend the rest of their days, living in an apartment, next to drug dealers, and gang bangers, living on dog food, saltines and peanut butter. Terrified, that their children will catch a bullet walking to school in the morning.

There are millions of American’s who have been placed in that position by them, and they deserve no less.

Report this

By GW=MCHammered, September 24, 2008 at 7:38 am Link to this comment
(Unregistered commenter)

An economy based on credit is the problem not the solution. It’s used to keep prices artificially high and wages low. It’s just one way those with capital take from those without capital. “Rent your life from us” is their motto.

Report this

By Dr. Knowitall, PhD, PhD, September 24, 2008 at 7:32 am Link to this comment

This is all BS folks, and I’m gonna tell you why.

55% of the people are against the bailout as is more than half of congress.

Bully Boy Bush isn’t going to take this sitting down, on behalf of his 1% benefactors.

We know that it has for a couple decades now, been the goal of the al Qaida Islamofascistmuslimrightwingradicalextremists to destroy world disaster capitalists, by hitting buildings with planes and bombs and striking at innocent people in market places and hotels.  They even tried breaking our banks with trumped up wars.  This hasn’t worked. 

Look for Bully Boy Bush to assert or aver that Wall Street has become infiltrated by IFMRWRE Operatives whose intent it is sabotage world financial markets by concocting toxins, like computer viruses, and spreading them throughout the world on the WWW.

I was reluctant to throw out the conspiracy word, but I’m a patriot and my heart spoke. 

Why not??  If you talk to someone in India about your Maytag, why not someone in Iran or Pakistan about your investments? 

This will strike fear into the hearts of Americans and Congress.

Look for Congress to pass the bailout as a strike against terrorism and for democracy and the Bully Boy Bush administration to begin to round up the usual suspects, especially those wearing nightgowns, beards and having names no one can pronounce and working directly or indirectly in the Wall Street network.

This is war, folks, and a religious one at that.
Onward, Disaster Christian Capitalists Soldiers!!!

Report this

By felicity, September 24, 2008 at 7:02 am Link to this comment

What little I’ve heard of the Paulson/Senate Finance Committee Show - my gut can only take so much - the government side would have us believe that what has transpired has taken them completely by surprise.

What a crock.  Repubs knew what was happening in the finance markets, hoping that the lid would stay on until after the election said nothing - thereby allowing billions more to disappear into the pockets of hedge funders, short-sellers, mortgage brokers and other crooks with each passing day.

The Dems, on the other hand, were praying nightly that the whole thing would blow close to but before Nov. giving them a sizeable edge in that election - nevermind what it was doing to our pocketbooks in the meantime.

I repeat, as Mark Twain said a long time ago, “There’s only one criminal class in America and it’s Congress.”

Report this

By Randall Wallace, September 24, 2008 at 6:52 am Link to this comment
(Unregistered commenter)

How in the world can you trust one of the kingpins who started the toxic waste sellathon in the late 90’s help us get out of this situation.

If this doesn’t give you sufficient reason to start demanding accountability, ponder this:

At the outset of the Reagon years, Reagon concluded that he must have “Captains of Industry” to help run his version of the government.  How do you recruit a “Captain of Industry”?  How do you take him away from his multimillion dollar environment and have him accept 200K - 300K/yr?  The answer my friends is that your congress has provided a sell out clause that allows this “Captain of Industry” a one time golden parachute is he serves for our country. 

Hank Paulson has sold 500 million dollars of Goldman Sach stock and hasn’t paid one fucking dime in taxes!!!  Neither has the multitude of other “Captains of Industry” when they grabbed their parachutes. Can you actually have a debate on weather this guy or any other corporatist is working for us?

I am through with these corrupt assholes!!

Can anyone help me to understand how I get a couple of million fucked over people together and start throwing rocks at our government buildings - The ones I would like are the White House and Congress of the USA

Let me know

Report this

By Jim Yell, September 24, 2008 at 6:47 am Link to this comment
(Unregistered commenter)

Bush and company want to bail out investment, a bail out that has come about by their waving of regulation and enforcement for 8 years. They want to do this with the public’s money and they want to do this without real oversight and to allow one of their political appointees to have complete freedom to use the money as he sees fit.

Now pardon me, but aren’t we in this mess because of Republican efforts to create laws without resort to legality, to free business from oversight and to allow complete freedom from oversight to this administration for 8 years? Now explain how letting people aka Bush/Cheney Administration complete freedom over how the money is used and complete freedom from prosecution if they steal the money? It makes no sense to give the money into the hands of the administration which brought us to this point from arrogance, stupidity and greed. Let them spend their own money for this not the publics.

Report this

By floydw, September 24, 2008 at 6:46 am Link to this comment

The biggest myth of all is that it can’t be allowed to fail! The truth is there is no chance for its survival. What we are seeing is not only the demise of free-markets but capitalism in its death throes. The central principle that governs all of nature is Impermanence. No thing, including socio-economic systems, survive forever. Nothing is exempt from the Law of Impermanence. This too shall pass. Change is the only constant. Each form conforms to an essential tripartite pattern of existence: emergence, maturity and decay. Following our catharsis, reason will again reach ascendancy and we will respond proactively to produce conditions sufficient to our survival. The only real question remaining is what degree of catastrophe will be required to catalyze change? How much crisis must we endure before we abandon the antiquated, anachronistic system currently wreaking havoc on the planet and our global community? and move into a system resonate with the new reality?

Report this

By floydw, September 24, 2008 at 6:37 am Link to this comment

Now that we have a bunch of socialist running the country, why not take over ExxonMobil? Surely they are too big to fail! So lets get aggressive and get in front of this fiasco, and do some acquiring of a few profitable companies to balance things out a bit. Exxon’s record profits would definitely be a plus in the portfolio currently being acquired by our government.

Report this

By floydw, September 24, 2008 at 6:32 am Link to this comment

Why is Warren Buffett smiling about his new stock purchase in Goldman Sachs?  If the government allowed you to privatize profits and socialize losses you would be smiling too. You would think a shrewd investor like Buffett (one of the world’s richest men) would steer clear of a “toxic-waste riddled, disaster-waiting-to-happen, in its death throes” company that needs 700,000,000,000 dollars of tax-payer money or it and all its buddies are toast, but no he is rushing in with his check book in hand. What a hero! Long live capitalism! Long live democracy! Long live free-markets.  Long live free-enterprise.  Long live the wage-laborer who picks up the tab at these feeding frenzies!!!

Report this

By Fahrenheit 451, September 24, 2008 at 6:28 am Link to this comment

The deal is this; the democrats will puff and bluster and the republicans will do likewise and then Paulson will get most of what he’s DEMANDING; ceding one or two points and then it will be business as usual.  Why would anybody believe that all of a sudden things have changed?

Report this

By oldhip, September 24, 2008 at 6:27 am Link to this comment

Go Ahead…
Just Keep “Allowing” - Keep Denying The Realities -
It’s Not Like It’s Actually Getting Worse - Much Worse -
Blatantly And Faster.

by This Old Hippie Because The Sky IS Falling…

“A nation without the will, the courage, to revolt - is a nation doomed, and revolting.”

The Corporatists Say to America: ‘Give us the $700 Billion, or else…’
They demand that it be given to them - without regulation, without question, without any
means to take them to court, in short - ‘Give us the money, and shut up.’  And you will
allow ‘your representatives’ to do it.  Without any real protest, or revolt, as you have for
the entire history of this current sneeringly criminal administration.

The Melting Of The Arctic Permafrost - Is Real - Is Happening - And It Is Bad...
Giga Tons of CO2 and methane are being released, right now, and it’s rate of release is
increasing.  Not that you would do anything to mitigate it, or do something ‘revolting’ to
stop the corporatists… that are causing this to happen, through proven man-made global
warming effects of their criminal profiteering.  At least you haven’t done anything real to
stop them yet, except support their manufactured and purposeful denial - Right? - Even
as the reality ‘bubbles out’ of the melting permafrost.

Oh Come On - Admit It -  You’re denying the reality of this right now - Aren’t you?
Even though every single criminally profiteering lie, and every single prediction of the
global warming effects and affects - has been proven, and proven to be happening more
blatantly, and the global warming proven to be happening at an increasingly faster rate
than all of the predictions so far.  This is not happening in some abstract future - It is
happening now.  And you know it is all undeniable, that it is your immediate reality…

But for some unfathomable reason, you simply can’t find the will - nor courage - To revolt.

Report this

By ProfessorDuh, September 24, 2008 at 6:07 am Link to this comment
(Unregistered commenter)

Isn’t it funny that , no matter what the crisis, the Bush administration’s answer is always the same: “Give us absolute power!”

Report this

By Hammo, September 24, 2008 at 5:52 am Link to this comment

Author Naomi Klein links the Wall Street situation with the “shock doctrine” or using fear and urgency to manipulate things like the invasion of Iraq, implemenation of the Patriot Act, and now, the Wall Street bailout.

Scheer seems to have a good handle on the situation too.

Food for thought in the article:

Wall Street’s special offer – but you must act now!

PopulistAmerica.com
Populist Party of America
Sept. 24, 2008

http://www.populistamerica.com/wall_streets_special_offer_but_you_must_act_now

Report this

By Kim, September 24, 2008 at 5:47 am Link to this comment
(Unregistered commenter)

Don’t compensate the money men and women - they are part of the problem - compensate the investors at the low end :- 1) establish a valuation date for the investments - eg. April 16 th. 2007 , 2) establish an evaluation date for current personal capital holdings - eg. house - eg. September 2 nd. 2008 , 3) state that anyone can exchange ALL their investment holdings for their value at the valuation date up to a maximum amount of $1M minus any amount of their personal capital holding over the value of $1M . It’s a simple formula and it bails out the Mom and Pop investors and passes this bailout up the chain - ie. the companies who own the investments - such as mortgaged homes - can liquidate these homes at reduced prices without any problems and the government will get a return . It ensures that Mom and Pop investors can each get $1M and live in a home together to the value of $2M . It does ensure that the people who have hijacked the money markets don’t get rewarded . It does ensure that the wise investors survive , as they wont need a bail out , and become dominant - which is good for the industry .

Report this

By Trigger Finger, September 24, 2008 at 5:46 am Link to this comment
(Unregistered commenter)

“Corporate takeover of government”

And we have a BINGO!

Report this

By Gloria Picchetti, September 24, 2008 at 5:33 am Link to this comment
(Unregistered commenter)

Forget Henry Paulson learn about Henry George who ran for mayor of New York. Paulson & his ilk belong in prison. If Martha can go to prison why are Wall ST execs walking away with golden parachutes?

Report this
Anarcissie's avatar

By Anarcissie, September 24, 2008 at 5:04 am Link to this comment

jackpine savage:
’ ... In fact, we should remember that the $700B we plan to use for the bailout must be borrowed before we can use it. ...’

I believe they’re going to print the money, so to speak.  In other words they’re going to replicate the original problem on a larger scale.

Report this

By jackpine savage, September 24, 2008 at 4:50 am Link to this comment

While i understand the sentiment that foreign banks should not be bailed out with US Taxpayer dollars, there is more to consider…

Namely that we’re already bankrupt and living off the “generosity” of others.  Our mess has infected economies around the world.  And if our solution helps only us, you can bet that at least a few countries will be done loaning us the money we need to make it into tomorrow.

In fact, we should remember that the $700B we plan to use for the bailout must be borrowed before we can use it.  Borrowed from people who are probably getting more than a little leery of lending us even more money.

Report this

By KISS, September 24, 2008 at 4:48 am Link to this comment

Where are the repugs, Conservatives and righteous right with their proclamation on laissez faire?
These highly principled economists were the true believers in absolute free marketing. Once again where are they? Phill Graham will do quite well with his crooked USB when government hands him a big bail-out for his stupidity in buying worthless mortgages.
The biggest shame is that not one crooked CEO will see the inside of a barred palace.
Only in Amerika.

Report this
PatrickHenry's avatar

By PatrickHenry, September 24, 2008 at 3:23 am Link to this comment

F*** this guy.

The bailout will devalue our currancy further and undermine all things financial.

Let AIG and these loophole corps die the death they deserve and we will be a stronger nation for it.

I’m sure the money we need is in some offshore account anyway.

Report this

By John, September 24, 2008 at 2:06 am Link to this comment
(Unregistered commenter)

This bailout plan is a swindle no matter what. It is a scheme by republican operatives to transfer a great deal of money to the corporations (and the democrats subserviant to corporate influence will support it). They are trying to ramrod this proposal before the next presidency just 4 months from now. They fear Obama will win. They are concerned about an end to the significant tax cuts and derugulation enjoyed in the past 7 years. Also, the operatives hope that increasing the deficit will handcuff Obama and a democratic congress in changing the status quo. This is a similar tactic as outlined by David Stockman former budget director under Reagan. He reported the republican plan was to borrow and spend to the point where the US economy would be unable to borrow anymore and the only choice left would be to cut back on all the entitlement programs. This is clearly a boondoggle which will only help the rich, wall street, the republican party and those democrats on the corporate payroll.

Report this

By Druthers, September 24, 2008 at 1:31 am Link to this comment
(Unregistered commenter)

In a few days or weeks Bush will probably be congratulating “Paulie” just as he did “Brownie.”
These are not boys who will be feeding with the fishes.
From day one the American people were betrayed by Congress, whose theme song should be “Roll Me Over.”
What a pity there is not something in their drinks that would make them change color, from green to yellow, as they become more and more afraid.

Aside from a handful of lucid lonely Reps and Senators they will vote as usual in view of political expediency - never for the suckers who vote for them.

This Congress has become a house of horrors.

Report this

Page 2 of 2 pages  <  1 2

 
Right 1, Site wide - BlogAds Premium
 
Right 2, Site wide - Blogads
 
Join the Liberal Blog Advertising Network
 
 
 
Right Skyscraper, Site Wide
 
Join the Liberal Blog Advertising Network
 

A Progressive Journal of News and Opinion   Publisher, Zuade Kaufman   Editor, Robert Scheer
© 2014 Truthdig, LLC. All rights reserved.

Like Truthdig on Facebook