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lquadland10 (< 20)

I am so sad.

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November 19, 2008 – Comments (5)

Naomi Klein: Bailout is ‘multi-trillion-dollar crime scene’

 

David Edwards and Muriel Kane
Raw Story
Wednesday, Nov 19, 2008

The Bush administration has already handed out almost half of the $700 billion in bank bailout money authorized by Congress but has not even filled the mandated oversight positions to review how it is being used.

Naomi Klein, author of The Shock Doctrine: The Rise of Disaster Capitalism, has described the handling of the bailout as “borderline criminal” because of this and other problems. Klein spoke to Amy Goodman of Democracy Now! on Monday to explain her accusations.

We were all reassured that there was going to be transparency, accountability, legality,” Klein stated. “But now we’re finding out that, in fact, Henry Paulson has achieved his original goal by stealth, because there is no accountability, and lawmakers are very hesitant to challenge this. … Essentially, what the Bush administration has done is said, ‘We dare you to challenge us and be responsible for the Great Depression.’”

Klein sees three areas of borderline illegality. The first is that rather than being used to get banks lending again, the bailout money “is instead going to bonuses, is instead going to dividends, going to salaries, going to mergers.”

The second is that, without Congressional authorization, “the Treasury Department pushed through a tax windfall for the banks, a piece of legislation that allows the banks to save a huge amount of money when they merge with each other. And the estimate is that this represents a loss of $140 billion worth of tax revenue for the US government.” 

The third problem, which dwarfs the $700 billion bailout itself, is that “there’s another $2 trillion that’s been handed out by the Federal Reserve in emergency loans to financial institutions, to banks, that actually we don’t really know who they’re handing the money out to, because, apparently, it’s a secret.”

“If the Fed has accepted distressed assets as collateral in exchange for these loans,” stated Klein, “there’s a very good chance the taxpayers aren’t going to be getting this money back. … So that’s why we’re calling this the ‘trillion-dollar crime scene’ or the ‘multi-trillion-dollar crime scene.’”

Klein argued that Congress should be challenging violations of the bailout legislation, but instead “what they’re saying is, we can’t afford to enforce the law … that somehow, because there’s an economic crisis, legality is a luxury that Congress can’t afford.”

“I’m quite concerned,” Klein stated, “that what we’re seeing from Obama’s team is an accepting of this logic that they need to give the market what it wants, which is continuity, smooth transition, which is really just code for more of the same. … I think we should question all of it. Across the board, I think the assumptions are faulty.”

Klein is also concerned that rather than using the crisis as a mandate to fix the underlying problems, the world leaders at the recent G20 summit were talking about propping up the old system.

“Think about what these leaders could do if they really wanted to,” Klein suggested. “When you have a crisis like this, which so clearly shows the need for those types of regulations, when you have an election like there just was in the United States, where people have said clearly that this is a priority, the leaders have an opportunity to act. … But they blew that opportunity, and they actually called for less regulation.”

“This crisis isn’t over,” Klein warned, “and the same people who justified this bailout, who clamored for this bailout, are the very people who are going to turn around and say to Barack Obama, ‘We can’t afford for you to make good on your election promises. We can’t afford universal healthcare.’”

The money has been given to the people who needed it least, and it’s going to be used to justify austerity measures imposed against those who need it most,” Klein concluded. “It’s going to be used to justify cuts to food stamps. It’s going to be used to justify cuts to Social Security, to health care, let alone being used to justify why more ambitious plans for a national health care program, for green energy are not affordable. So people have to be ready for this. You know, the next shock is yet to come.”
Democracy Now! has a full transcript of Naomi Klein’s interview.  http://www.prisonplanet.com/naomi-klein-bailout-is-multi-trillion-dollar-crime-scene.html      http://www.democracynow.org/shows/2008/11/17                                                            Drug Cartels invading the Border  Patrol. My Brave Troops over seas in harms way.  What are the pharsies and money lenders up to next? Yet with all of this going on the kindness of people all around me make my heart sing. A customer at work today saw me struggling with a heavy load of books I had to move and just took the 50 lbs out of my arms and moved them to where they had to go. I broke down and cried at his kindness. I Hate to cry in public. But sometimes the simple act of kindness touches a deep part of your soul and the emotion just overwhelms you. Grumpy Mean men that I have waited on for years now pat my hand and tell me it will all be ok and that they are working on it. Don't worry they say as they walk away. Those damn tears well up again as I try so hard to remain profesional. So though it looks grim indeed your simple acts of kindness here and all around this country have help each of us together get through this. Rember what counts the most your family and friends and strangers as well. I don't like loosing money but in the grand skeem of things I have gained far more than I have lost for I have found new friends who put up with me here. Thank you. 

5 Comments – Post Your Own

#1) On November 19, 2008 at 11:07 PM, milpo (52.07) wrote:

I have never seen the U.S. Treasury raped to the degree it has been over the past 8 years. Deep down, I am feeling a sense of perverted satisfaction.  Look to you left and to your right. Half the idiots you see actually voted for Bush not only once but twice. Blinded by xenophobic loyalty to some strange doctrine, they cast a ballot despite the fact that they were beeing fleeced and have treasonously sacrificed the lives of our sons and daughters.  We have become such cowards. Not only should the impeachment of George Bush continue beyond his term, but Cheney should be arrested, Paulson should be hung, and Bernanke should be waterboarded and forced to give up the names that sent the whole world into a spontaneous and precipitatous depression.  In any other 3rd world country, there would be rioting in the streets and constant demands for their heads on a platter.  An administration that did not veto a single bill till they lost control of Congress isn 2006.  A complete sellout to insurance companies, drug companies, and finance companies.  An arbitrage pushing the price of oil through the roof in order to biopsy the American citizens pocketbook for 5 years to the tune of an additional $2 per gallon.  And even that is not enough.  An estimated $3 trillion dollars of unknown funds through war profiteering in a fictitious war against a fictitious concept known as terrorism. The only terrorists are in the White House and they have committed high crimes and misdemeanors beyond the scope of reality. We are governed by a simpleton and a coward.  And finally, a parting shot.  Stealling approximately $10 trillion dollars from the treasury is not enough. It is necessary for these ignorant beougois cowboys to depart with an additional $3 trillion dollars through this ridiculous bailout.

Your  sad my friend.  I am livid.

Heartfelt best,

Milpo

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#2) On November 19, 2008 at 11:46 PM, milpo (52.07) wrote:

And is there any creature on the face of this earth uglier that a dumb cowboy with money.  Or more dangerous.

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#3) On November 20, 2008 at 12:43 AM, Harold71 (20.30) wrote:

Bush is a mere puppet.  He does what he's told, like 99% of politicians.  So blaming someone for voting for him really makes no sense.  The end game is exactly the same, the puppet in the show is simply altered in your scenario...

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#4) On November 20, 2008 at 1:10 AM, lquadland10 (< 20) wrote:

Yes and yet Milpo I did not comunacate well. I am way past Livid and I went Nuceler about 6 mos ago. My Mantra is in his perfect time not mine. If I had my way this would have stoped about 3 years ago when I first learned about what is going on and how our government works. The first part of the artical was to let people know what is going on new in the news. Second part was to thank people and to let them know that the kindness they and others goes a long way on making the journey easier. (((((((((((Drug Cartels invading the Border  Patrol. My Brave Troops over seas in harms way.  What are the pharsies and money lenders up to next? Yet with all of this going on the kindness of people all around me make my heart sing. A customer at work today saw me struggling with a heavy load of books I had to move and just took the 50 lbs out of my arms and moved them to where they had to go. I broke down and cried at his kindness. I Hate to cry in public. But sometimes the simple act of kindness touches a deep part of your soul and the emotion just overwhelms you. Grumpy Mean men that I have waited on for years now pat my hand and tell me it will all be ok and that they are working on it. Don't worry they say as they walk away. Those damn tears well up again as I try so hard to remain profesional. So though it looks grim indeed your simple acts of kindness here and all around this country have help each of us together get through this. Rember what counts the most, your family and friends and strangers as well. I don't like loosing money but in the grand skeem of things I have gained far more than I have lost for I have found new friends who put up with me here. Thank you.

Report this comment
#5) On November 20, 2008 at 5:25 AM, gobzee (< 20) wrote:

I am sad too. It's kind of how I felt after Bush stole the first election, robbed. The "free trade rules all" camp and the Republicans couldn't privatize social security so they privatized the Treasury instead. They should be put in jail.

 http://www.onejest.blogspot.com

 

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