Capitalists today are singing the praises of Bush’s socialist gift. How ironic.
The 700 billion dollar bank bailout makes me so nauseated I had to create a new category for my blog: “evil.” I don’t normally believe in such a thing, but this is really the final sign that Bush and Co. have stuck Adam Smith’s magic finger into the you-know-what of the seventh generation born after today. The good news is that tax payers will not have the money to pay off this criminal debt anyways, so say goodbye to the Empire. I mean it it. Stick a fork in it now, and then buy some futures to profit on its death.
PS Thank the Great Whatever that there are smart people like Glenn Greenwald who can articulate what is so painfully obvious. Read on and weep.
What is more intrinsically corrupt than allowing people to engage in high-reward/no-risk capitalism — where they reap tens of millions of dollars and more every year while their reckless gambles are paying off only to then have the Government shift their losses to the citizenry at large once their schemes collapse? We’ve retroactively created a win-only system where the wealthiest corporations and their shareholders are free to gamble for as long as they win and then force others who have no upside to pay for their losses. Watching Wall St. erupt with an orgy of celebration on Friday after it became clear the Government (i.e., you) would pay for their disaster was literally nauseating, as the very people who wreaked this havoc are now being rewarded.
More amazingly, they’re free to walk away without having to disgorge their gains; at worst, they’re just “forced” to walk away without any further stake in the gamble. How can these bailouts not at least be categorically conditioned on the disgorgement of ill-gotten gains from those who are responsible? The mere fact that shareholders might lose their stake going forward doesn’t resolve that concern; why should those who so fantastically profited from these schemes they couldn’t support walk away with their gains? This is “redistribution of wealth” and “government takeover of industry” on the grandest scale imaginable — the buzzphrases that have been thrown around for decades to represent all that is evil and bad in the world. That’s all this is; it’s not an “investment” by the Government in any real sense but just a magical transfer of losses away from those who are responsible for these losses to those who aren’t.
Greenwald goes onto point out that there is no debate in the press concerning this final kleptocratic theft on behalf of Wall St. I just want to point out the obvious: corporate media is a glorious twinkling denial machine. They are terrified to undermine their foundational reality. Poor suckers, really. I admit, I’m not feeling so compassionate at this moment. So please excuse me as I fall of the Dharma wagon right now and scream out into the universe: WTF!!!!!!!!!!!!!!!
Ack! And now this from the same Greenwald article:
UPDATE: Here is the current draft for the latest plan. It’s elegantly simple. The three key provisions: (1) The Treasury Secretary is authorized to buy up to $700 billion of any mortgage-related assets (so he can just transfer that amount to any corporations in exchange for their worthless or severely crippled “assets”) [Sec. 6]; (2) The ceiling on the national debt is raised to $11.3 trillion to accommodate this scheme [Sec. 10]; and (3) best of all: “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” [Sec. 8].
Put another way, this authorizes Hank Paulson to transfer $700 billion of taxpayer money to private industry in his sole discretion, and nobody has the right or ability to review or challenge any decision he makes.