[Peace-discuss] Obama to coddle bankers

[E. Wayne Johnson]

Mr. Obot is a puppet, a drone owned by the those who put him into 
office, not the people who voted for him, but the higher level operators 
who shape opinion and control the hypnotized groupthinking sheeple.

Although we are oft advised to consider stupidity as an explanation for 
these actions, it really does smell like malice, or more correctly, a 
robbery.

The  Fed would need to print from thin air at least another 10 trillion 
to fill the hole.  Which would lead to yet more problems.

Bernanke stated today before that the Fed is following the 
recommendation of Milton Friedman, rather than the recommendations of 
the Austrians, so the Fed is ready to create yet more money, that is, 
more debt.

Interesting I heard Obama say on the radio something to the effect that 
the people ought to remove him if he can't fix the economy...an 
interesting statement.


C. G. Estabrook wrote:
> Emily Dickinson once advised: “Tell all the Truth but tell it slant.” 
> Evidently the New York Times’ headline writers are taking advice from 
> the enigmatic poet. The headline on the story on how the Obama 
> administration will be going easy on banks and bankers getting bailout 
> money blamed it all on the Treasury Secretary: “Geithner Said to Have 
> Prevailed on the Bailout.” In internal administration battles, 
> Geithner “successfully fought against” stricter rules on executive 
> pay, and beat back the attempts to replace top maangement.
>
> Of course, to say that Geithner won these battles is to say that Obama 
> agreed with him. Once again, the embodiment of hope and change went 
> with the status quo when he didn’t really have to. There would have 
> been little political price to pay for putting the screws to the 
> banksters.
>
> And it looks like the Treasury and the Fed will pump up some $250-500 
> billion to help hedge funds buy bad assets - with the FDIC 
> guaranteeing the buyers against losses.
>
> At this point, the only thing that makes any sense is to nationalize 
> the weakest banks, kick out management, wipe out the shareholders, 
> clear the decks, and start over with a tightly regulated system. This 
> isn’t even all that radical a position anymore - and it may be 
> inevitable, if these sick and devious “public-private partnership” 
> schemes don’t work out, which seems likely. There is a radical 
> nationalization position - take the banks over and convert them to 
> public institutions - but I know that’s completely out of the question 
> with this gang. But they’re doing absolutely everything they can to 
> avoid even an orthodox nationalization. This is looking more and more 
> like Japan’s disastrous indulgence of their “zombie banks” in the 
> 1990s than Sweden’s successful bailout, the model for the “nationalize 
> them and clear the decks” approach. Instead of a few rough years, 
> we’re likely to get a miserable decade.
>
> They’ve botched the stimulus, and they’re botching the financial 
> rescue. They’re worse than I expected, and I wasn’t expecting much in 
> the first place.
>
> --Doug Henwood <http://doughenwood.wordpress.com/>
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