Friday, September 26, 2008

What's the Rush?

"The situation may get urgent, but it's not urgent right now. Right now it's a financial sector problem.''

That is what 150 economists say about the proposed $700 billion bailout/giveaway to Wall Street. They outlined their concerns in a letter to Congressional leaders and warned them not to be stampeded into doing further harm to the economy.

In this week's Black Agenda Report I expressed my fears that the give away is the first step in stealing from the national treasury. We will be told that social security, the only safety net Americans have, must be privatized or that spending on non-defense related programs has to go.

One of the signatories of the letter, David K. Levine of Washington University, had a more disturbing observation about recent market activity or rather inactivity. "I suspect that part of what we're seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout."

Hat tip goes to Arthur Silber, who as always makes the point that the ruling class are doing what they always do. They are ruling the rest of us. Just assume the position, like politicians tell you to do. Barack Obama says that ". . . issues like bankruptcy reform, which are very important to Democrats, is probably something that we shouldn't try to do in this piece of legislation." Of course not, that would mean answering to working people instead of the corporate masters who control both political parties.

Michael Hudson points out that the only way for the give away plot to work is for another bubble to be created. It isn't possible to make money for Wall Street while also helping Americans facing foreclosure. "In order for the existing junk mortgages to be “made good,” real estate prices must be raised further above the ability to pay for this year’s five million homeowners in arrears and facing default."

That is really not very shocking. It is just the ruling class doing what they always do. Nothing to see here. Move along.