Paul Krugman’s column explains Henry Paulsonâ€™s $700 billion rescue plan for the U.S. financial system. The title of the column provides a hint of Krugman’s opinion — “Cash for Trash.”
Basically, after having spent a year and a half telling everyone that things were under control, the Bush administration says that the sky is falling, and that to save the world we have to do exactly what it says now now now.
Once again, the Bush Administration and right-wingers in Congress are using a crisis to shift more wealth to the extremely wealthy. “Plan B” will reward the people who got us into this mess with a penalty-free bailout. Taxpayers and America in general will be the poorer for it.
Is there any reason outside avarice and corruption that the feds are pursuing this course? A conservative blogger (whose analysis of the crisis is reasonably sane) says,
Of course the almost hysterical urgency is partially because the locks on the coffers change in January. If Obama wins, so will the tax code. The administration’s preferred version of the bailout would be one last Wall Street giveaway before higher taxes and a tougher regulatory environment.
In other words, if Obama wins they’ll no longer be guarding the henhouse, so they’re making off with as many chickens as they can carry while they still can.
Dems in Congress are making noises about help for homeowners and caps on top executive compensation. Will they once again get railroaded into doing what the administration wants? Sean-Paul Kelley says there is room for hope. Very little room, I say. I don’t see what the Dems could lose by sticking to principles, and there is much they could gain, but we’ve been here too many times before, haven’t we?
Elsewhere: You know we’re approaching the End of Days when Sam Donaldson, George Will and Cokie Roberts trash a Republican and praise a Democrat. WTF? you say. My guess is that this trio lost a whole lot of money this week and realized that if they don’t want to be wiped out entirely they do not want to put John McCain in charge of the economy. “John McCain showed his personality this week,” Will said, “and made some of us fearful.” I know the feeling.
Meanwhile, most of the Right Blogosphere remains oblivious to the details of the financial crisis and the atrocity the feds are about to commit to “fix” it. Rather than concern themselves with understanding the issues, they’ve gone into hyper-blame mode. Clif give us his version of the shorter Right Blogosphere: “[T]he reason for the current financial crisis is that the Community Reinvestment Act passed by the Democrats forced banks to lend money to a bunch of shiftless darkies who couldnâ€™t repay their loans.”
Nothing much else to do but laugh.