Executives and traders on the Street have become the single biggest sources of money for Democrats as well as Republicans. And with mid-term elections looming next year, you can bet every member of Congress has a glint in his or her eye directed at the Street.
The Congress, always in hock to Wall Street, is dragging its feet in passing anything near the sweeping regulatory restructuring that is needed if we are to prevent Goldman Sachs and the rest of the gang from exploiting their “moral hazard” by using the federal treasury as the mother of all “credit default swaps.”
It’s amazing that even after the entire Wall Street house of cards collapsed a year ago requiring the public sector to rescue the private sector these fierce advocates of free-market fundamentalism can still show their faces in public, let alone gather to rail against the evils of the government that saved their asses.
It would be hard to get a new stimulus package through Congress, but no member who’s up for reelection next year when unemployment is likely to be in double digits wants to be accused by rivals of voting against steps to help small businesses, public schools, childrens’ health, and average working people who need a tax cut.
Let’s be clear: Wall Street today is up to the same tricks it was playing before its near-death experience: Derivatives, derivatives of derivatives, fancy-dance trading schemes, high-risk bets. “Our model really never changed, we’ve said very consistently that our business model remained the same,” says Goldman Sach’s chief financial officer.
The California State Senate adjourned at midnight, unable to pass three stopgap bills that would have saved the state $7 billion. To appease Governor Arnold Schwarzenegger, the Democratic leaders of the state legislature hastily drew up the three complicated bills to try to stave off fiscal collapse and the necessity to begin issuing IOUs. All [...]
Franklin Delano Roosevelt declared that the test of our nation was “not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” California Governor Arnold Schwarzenegger might be married to a Kennedy but his governing philosophy is pure George W. Bush [...]
When his term mercifully expires next year, California Governor Arnold Schwarzenegger will be leaving the Golden State in the worst condition than at any time its history. If Schwarzenegger and his right-wing Republican co-conspirators get their way (as they always seem to do), they’ll gut every social program and educational institution in the state in [...]
Although the story is being widely reported across Europe and Asia, it’s received scant media coverage in the US. AsiaNews along with other major media outlets outside the US are reporting that Italy’s financial police, the Guardia Italiana di Finanza, seized US government bonds worth $134.5 billion from two Japanese nationals at Chiasso, located less [...]
“The long memory is the most radical idea in America.” –Utah Phillips, as recalled by Amy Goodman I was reminded of Utah Phillips’ observation as I sat down to write this essay on how we approach public policy for dealing with unemployment during a time of mass unemployment. I intended to start off the essay [...]