Sample:
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover-up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are.
WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They're scared to death of a collapse. They're afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we'll run screaming to the exits. And we won't rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it's foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, "We just can't let the big banks fail." That's wrong.
BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?
WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We've seen how horrific AIG -- and remember, they kept secrets from everyone.
We should hit the streets with our pots and pans. And remember this is not just the U.S. It's happened in the U.K. and in Ireland also.
I see the economist Paul Krugman is persistently criticising Obama's economic policies, saying it's pointless to keep throwing money at banks that are essentially insolvent. Though letting them all collapse would surely produce complete mayhem and ruin millions of people? Even if deposit insurance actually coughed up, it presumably wouldn't be paid for some time.
ReplyDeleteWere our Grandparents correct to keep their money in the mattress? I'm beginning to think they were!
ReplyDeleteThere is a big protest, or rather set of protests, planned for April 11. See http://anewwayforward.org/demonstrations/ and Bill Moyers' interview with William Grieder (http://www.youtube.com/watch?v=GqOUxx4UVo4).
ReplyDeleteIf you live in the USA, you can check A New Way Forward for the nearest protest to you.
I'm ignorant as to how the economy works, so can't hope to understand what's what in the current mess.
ReplyDeleteI do, however, trust President Obama's judgment. I don't admire writers like Paul Krugman and others, and this guy, who try to undermind the administrations' efforts.
As I say, I'm ignorant. I'm following intuition - gut feeling.
It's easy for those not involved to criticise and carp and spread fear. I feel that's the wrong approach in present circumstances.
Nick:
ReplyDeleteMaybe the assets should be held in escrow and the liabilities separated and new banks created? I honestly cannot see this new plan working, but I'm no economist. I just listen to all sides.
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GM:
ReplyDeleteI've been trying to find out everything I can about accessing gold bars. Seriously. though here in Canada we have what's considered the best banking system in the world.
Then again, the mattress? good return!
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Excellent link, Anne.
ReplyDeleteThe way I see it is the banks got us into this gigantic mess (with the collusion of the U.S. government). I have an enormous logical difficulty with these bailouts and see them only as saving the deckchairs on the Titanic.
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T:
ReplyDeleteI disagree.
I think what was wrong with the last regime is that there wasn't enough criticism with the erosion of the constitution and the invasion of Iraq.
Mr. Obama has inherited a frightful mess but I truly believe that he shouldn't follow the policies that made it a worse mess, i.e. the bailouts. He needs to take a brand new approach before there is no going back from the precipice of a serious Depression that will make the last one look like a picnic.
I've got very bad vibes on this, so I may have to borrow your optimism for a while!!
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My own opinion is that Obama is relying on Geitner to advise him, and as we know from Bill Moyer's excellent interview with Bill Black, Geitner is 'one of them'.
ReplyDeleteI agree with Twilight that Obama is probably the most trustworthy of politicians around the US Congress right now, but he doesn't know everything, and if he relies on the wrong people matters will just get worse.
For me, Obama's hesitancy to pursue the fraudsters and bring them to justice is his greatest failing so far. But, who knows, as a damned good law professor, he may simply be biding his time.
Like you, RJA, I do not trust some of the courtiers around Mr. Obama.
ReplyDeleteI do hope he brings his own fine mind to thinking the whole economic meltdown through and by not throwing money at the swindlers who got us there.
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