[Peace-discuss] Obama to coddle bankers

[E. Wayne Johnson]

I meant to say "Bernanke stated today before Congress..."

E. Wayne Johnson wrote:
> 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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>>
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