Friday :: Jul 17, 2009

Worse Than The Way We Were

by paradox

I have been ill the last two days with a trying health issue and foolishly did not stay away from the computer, so the results were predictably combative and angry in the threads and essays. I don’t approve of many Democratic Party tactics and I’m terribly impatient, so the outputs were correspondingly not good, and I apologize to the Daily Kos community for deliberately blowing up a thread with a fight Wednesday, I won’t do that again.

Feeling better is still not a good reason to look at the latest incredible twist to the Goldman Sachs story, for the news is incredibly bad and yet again casts me as the obstreperous gadfly Party bomb-thrower, which I’ve said many times I’m very weary of but will not shrink from when duty absolutely calls. Great, here we go.

Required Goldman Sachs reading (most readers here surely have) in this amazing debacle comes from the great Matt Taibbi article in Rolling Stone and his follow-up piece from his blog yesterday. All along I have strenuously objected in strongest possible terms the financial strategy of saving the Finance industry so we could go back to the way were, if action forced the use of funds because banks were too big to fail then at the very least many should be broken up now that the markets have stabilized.

No, no, the answer always came back, we like things the way they were, we’ll work toward that. Summers and Geithner got it, all right, but it’s even worse that what existed before, unfortunately, a lot worse. By rescuing these financial institutions, especially Goldman Sachs, the United States has now taken on and guaranteed a huge load of risk the companies exposed themselves to.

We’re getting fleeced, Goldman Sachs used huge amounts of subsidies to vastly enrich themselves, while at the same time instantly racking up risk they’re not accountable for. At least in the way we were reality didn’t force America to back up the entire Finance industry, but we do now.

The way we were also didn’t include direct cash subsidy to enrich bankers who got us into this mess in the first place. To say the little people have been manipulated in this scenario is the greatest of understatements possible, it’s an unholy disaster of massive scope for the US government and the people of America.

Watching the Lehrer News Hour yesterday the extremely good Appelbaum1 of the Washington Post pointed out credit was still extremely hard to come by in the market. That was the entire rationale for moving trillions of dollars around, but the only result was riches for Goldman Sachs. To all appearances it was all just a lie, we’ve been ripped off to enrich Goldman Sachs.2

The Obama Administration and the Democratic Party own this disaster as much as the Republicans after this. Welcome to the Reality Society, don’t look at me.

I’m extremely unhappy about this, I’m upset to a significant degree about Obama’s “indefinite detention” and other civil liberty stances, we appear to have lost card check for the unions yesterday, and I’m still appalled at two ongoing wars with the necessarily psychotic defense budget. Just to make it calmly, liberally clear.

It does not mean I or any other sane soul in the country will become a Republican voter because of it, please, there is absolutely no danger from our haplessly imploding Republican cousins taking significant political advantage from this. I’m not being disloyal or helping the opposition, I’m standing up for the little people, Goldman Sachs is just a terrible result that cannot pass with protest.

Along with calls for complete regulation of the financial markets and breaking up of these dangerous too-big-to-fail banks. There is never really any going back, a Financial desire for the way we were only got us manipulated, ripped off and worse than the way we were.

[1] It’s a lousy right-wing hack paper that naturally fired Froomkin, but Binyamin Appelbaum is a great writer and reporter.

[2] We live in alleged Democracy and I’d very much like to see the Fed transparency bill move ass through Congress right away. We can call the country a Democracy all we want, right, but it’s not much of one when Bernanke gives the little people the finger and won’t even use open books.

paradox :: 6:45 AM :: Comments (13) :: Digg It!