"The wealthy, not only by private fraud but also by common laws, do every day pluck and snatch away from the people some part of their daily living. Therefore, when I consider and weigh in my mind these commonwealths which nowadays do flourish, I perceive nothing but a certain conspiracy of rich men in procuring their own commodities under the name and authority of the commonwealth.

They invent and devise all means and crafts, first how to keep safely without fear of losing that which they have unjustly gathered together, and next how to hire and abuse the work and labor of the people for as little money and effort as possible."

Thomas More, Utopia

Sunday, October 05, 2008

Dean Baker on the Giveaway

15 comments:

Rue St. Michel said...

I couldn't agree with Dr. Baker more! This housing bubble was created by politicians who were pandering to folks who shouldn't have been given loans to buy homes in the first place!

The CRA of 1977 started the ball rolling and then we had Clinton add even more layers of bureaucracy to it - so that banks were COMPELLED to loan to high-risk borrowers, or risk the wrath of federal regulators.

Now that the housing market shrunk a bit, everyone's in a panic to start throwing money at it. What utter bullshit! That Paulson piece of garbage never should have been authorized.

No company in this economy is "too big to fail" - the only thing too big to allow to fail is the government.

Good post, Coldie. I knew that if I came back enough times you'd make my day! :)

Coldtype said...

The important thing to take away from this mess Rue is that the Banksters are still the kings. Congress refused to consider any other alternative to this giveaway, which by the way is completely unconstitutional for the Treasury has no lawful authority to hand public money to private institutions virtually without oversight. Congress has completely abdicated its responsibility and handed it to an unelected appointed official (Paulson) whose loyalty to Wall Street is unquestioned. To add insult to injury Paulson plans to hire the very hustlers and crooks who were largely responsible for the collapse of the financial sector to oversee it.

We no longer live in a constitutional republic Rue and really haven’t for some time. The events of last week should have made this fact explicit for those who failed to note our status under the Patriot Acts and the Military Commissions Act of 2006. The US is now officially a kleptocracy in which the interests of Capital and the State have fused as one to detriment of the population and the real economy of productive work. Note that the Giveaway plan gives Wall Street alum Hank Paulson virtual dictatorial powers over the nation’s purse-strings and his decisions cannot be overruled by ANY judicial or legislative body. Recall that a state managed economy and political order in which policy is largely directed by the interests of Capital is the definition of fascism. We are there.

Rue St. Michel said...

You're right that we don't live in a Republic anymore. It's a 'soft-tyranny'

And, you're right again that it's unconstitutional to fund private financial institutions using tax payer money.

I've never heard the term 'kleptocracy' - I'll have to go look it up.

BTW, are you going to vote in this upcoming election? Just curious...

Coldtype said...

By "kleptocracy" I refer to a situation in which the mechanisms of the State are utilized to facilitate the theft of its resources by an unaccountable elite. This in contrast to a democracy which would ostensibly serve the needs of the general population.

As far as voting in the upcoming elections Rue at the most I'll cast a symbolic vote for Nader since I recognize these affairs to be complete shams. Both McCain and Obama are complete and utter whores for Wall Street, Big Pharma, the energy giants, the insurance industry, and the all-encompassing military industrial complex so I wouldn't cast a vote for either of them--even if paid cash to do so.

The country is in big trouble Rue and these financial convulsions are but the tip of the iceberg. Worst, the bipartisan "solutions" being considered are GUARANTEED to annihilate the dollar and introduce hyperinflation thus destroying what meager savings most Americans do have. The Giveaway assures that the Goldman Sachs clique on Wall Street (not all of the titans will be saved) are protected and adequately capitalized to survive a likely depression while the rest of us drown. Both major political parties are on board with this scheme as the past week demonstrated. Though two thirds to three quarters of the American public and some 200 of the top economists in the nation opposed this form of a bailout Congress passed it anyway. That speaks volumes.

Rue St. Michel said...

Yes, how about it! We just saw how the collapse of Freddie/Fannie was able to destabilize our economy (thanks to greedy politicians who cooked the books and then thwarted congressional oversight).

So now our leadership is dumping almost a trillion dollars in an attempt to keep our financial structures operating.

You know what's next? Social Security and Medicaid.

They've been delving into those two cookie jars for the past 3 decades and we're about to see them crash like a house of cards. Again, the leadership won't act until some national catastrophe confronts them.

God help us! (oops! are you an atheist? hope I didn't offend you. You know what's the saddest part of being an atheist? No one to talk to during sex.... :-)

P.s. I'm adding you to my blog-roll.

Rue

Coldtype said...

LOL! I'll add you as well.

Anonymous said...

The love between you Coldie and Rue-y featured here reminds me of the episode of "All in the Family" when Archie chides Mike the Meathead and next-door neighbor Irene Larunizzio as they speak of the rights to worship or not. "Look da Katholack and the atheisist together, ain't that a sight."

Be it know Coldie you will be reported at the next cell meeting and you may be censured by fellow comrades. that is all.

"leftisthebest"

Coldtype said...

Lefty I think the Giveaway Plan is one of those rare events in which both the Left and Right can agree that it's basically a daylight heist. Where we diverge is over the matter of what should follow next. For example, I don't think there can be any real question that free market fundamentalism has been thoroughly discredited by recent events, yet there remain diehards on the Right who will keep the faith no matter what. The key difference now being that the neo-cons have lost considerable prestige after 8 years of Team Bush and the train wreck they have made of our nation's economy and reputation around the world. Granted this was all a bipartisan affair but there is no doubt as to which party held the reins.

Anonymous said...

Okay Coldie, I have your back.

Let it be known I shall be your advocate representative during the hearing before the United Secretariat of the Fourth International.

I think we can beat all charges before the comrades and you won't even receive a censure. Sorry Rue-y, I cannot bring you along to Mother Russia as a character reference for Coldie, I know you'll understand.

"leftisthebest"

Coldtype said...

I do appreciate it.

Rue St Michels Evil Twin said...

Au contraire, mes amis...ColdType will have much to answer for at the next ComIntern Conference

Specifically, ColdType will be adjudged an "enemy of The People" for failing to uphold the party line. He has ignored all 10 planks of the Official Communist Manisfesto:

1. Abolition of property in land and application of all rents of land to public purposes. [Coldie owns a house, and a car!]
2. A heavy progressive or graduated income tax. [Coldie doesn't support heavier taxes! He has secretly informed friends that he doesn't like to pay taxes to the party.]
3. Abolition of all right of inheritance. [Coldie wants to retain ownership of his home. Outrageous! And upon his demise, he wants his family to keep it.]
4. Confiscation of the property of all emigrants and rebels.
5. Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.[Coldie has 3 different credit cards, pays interest to the private bank that holds his mortgage, AND shops around regularly for the best deals on items he's going to purchase. Coldie virtually encourages competition among the Capitalists for his business![
6. Centralization of the means of communication and transport in the hands of the State.[I've never see him take a train or a cab.]
7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.[Coldie only thinks of himself, and not his struggling comrades nor for the party that toils to liberate the working class.]
8. Equal liability of all to labor. Establishment of industrial armies, especially for agriculture.[Coldie is an arch-reactionary because he enjoys living in an urban environment and looks down on those who toil in the earth.]
9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equable distribution of the population over the country.[see point 8]
10. Free education for all children in public schools. Abolition of childrens' factory labor in its present form. Combination of education with industrial production.[When asked to boycott and march on Disney World, in order to decry the exploitation of child labor, Coldie said no!]

As you can see, Coldie is an enemy of the people and is, in fact and deed, a reactionary bourgeoisie. I see no other option except public execution.

Sorry buddy.

Coldtype said...

That's some of the funniest stuff I've seen in a long time Rue! Very good.

Anonymous said...

I think Rue-y must have slipped something in Coldie's drink in an attempt to turn him. I'll really start to worry when Coldie says he'll vote for Obama or McShame.

WORKERS OF THE WORLD UNITE!!!

"leftisthebest"

Rue St. Michel said...

"Bad Spellers of the World - Untie!"

Coldtype said...

Not a chance Lefty. I think it's almost a foregone conclusion that the Barockstar will win this thing barring some spectacular stumble between now and November because the Republicans so own the current mess [albeit with critical Dem assistance] and try as he might McCain can't escape the fact that 90% of the time he voted with the worst administration in the republic's history. Bush's legacy is McCain's legacy. game, set, match. It's over for the madman from Arizona.

Having said that, it will be interesting to witness the crushing letdown which awaits the Obamabots once the Prince of Change reveals his true Wall Street, Big Pharma, United Security State colors after the coronation.