Lots of talk today about the bankster’s failure to comply with basic contract and property law when they skimmed a few trillion dollars of wealth out of the middle class may require another bailout.
Politically, this is something that Democrats of the early 20th century would have benefitted from, but this kind of bank-friendly pseudo-working class Democrat that we have today will not only suffer from, but could face disaster over.
Sure, a lot of this is Bush’s fault. But Obama refused to nationalize the banks because we aren’t Sweden. You see, Democrats can’t nationalize things. Thank God he did that! Otherwise he might have gotten called a socialist!
And leaving the men who saved the world in Geithner and Bernanke in the reins, the promised pragmatic solutions. And so many people have told us that TARP was a success. Sure. It saved the banks from collapse. That time. And it didn’t end up costing that much. People who oppose it almost all would have been even more upset at the opposite consequences, which almost surely would have result in more “big government” not less.
But the luke-warm financial sector reform that just passed and TARP apparently aren’t good enough to fix the Bush era feeding frenzy. So, all of that talk is now compromised depending on what develops.
The odds are there will be another bailout that Obama has to “ram through” that Republicans will oppose—in power or not—that lets the banksters keep their bonuses and suffer no pain, just like TARP. Then they’ll all get mad that Obama wants something minimal in return and whine about regulations and support the Republicans anyway. Oh, and Larry Summers will make sure that any Democrat that speaks up for normal people gets labeled a crackpot or has to go Independent like Bernie Sanders.
But the solution is clearly to nationalize the banks until they are no longer a systematic threat to the system. And, as I suggested almost 2 years ago, a new form of bankruptcy that helps people stay in their houses without destroying their credit. Is that fair? No, it’s not fair. But neither is the continued fat-hog-cutting the banksters are doing. It’s time for “not fair” to benefit someone else and do so in a way that helps shore up basic economic security and demand.
Also, this could have consequences that would affect 2012. The Republicans will make sure of that. Good thing President Snowe made sure that the Very Serious People got their way and kept the stimulus so small!
These people are insane, stupid, and powerful.