Posted inUncategorized

They welcome our hatred

Events forced me to fly across the country. Because the old bereavement fares have gone the way of free (and tasty) meals, in-flight movies, free baggage check and an airport experience not out of Lockup Raw, USAirways got quite the bite out of my wallet. The flight was late and several restrooms on the 757 were not working. Of course the entire process — from getting out of the taxi under the din of recorded commands to reaching the gate area which never has enough seats for waiting passengers — was a joy.

The airlines don't care. We're stuck. Where in 1936, Franklin Roosevelt announced that never before in American history had the forces of money and privilege been arrayed against one candidate, and "I welcome their hatred," now the situation is reversed. More and more, highly concentrated industries and the moneyed elites welcome our hatred, then keep on tightening the screws. Americans sheepishly accept the hatred and queue right up for more.

Other sectors come to mind beyond airlines, health insurance and "financial services" at the top of the list. President Obama seems determined to get insurance industry "buy in" on health care reform, so we know how that song will end. It's appropriate to remember our friends the bankers on the anniversary of the failure of Lehman Brothers. A year later, the TARP money is unaccounted for, the industry is more concentrated and thus dangerous than ever, and real regulatory reform appears DOA. And for these privileges, Americans will get ever more gouged on banking fees and insurance premiums — if they can even keep the latter. Meanwhile, executive salaries and profits keep rising.

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Posted inUncategorized

Yet another financial swindle sneaks into the ‘rescue’

So what did Americans really get when Congress approved a bill giving the Treasury power to spend some $700 billion to stem the financial panic? It's becoming clear that Treasury Secretary Hank Paulson has mishandled the crisis in typical Bushian fashion. First with incompetence, by allowing the investment banking sector he came from to march over the edge of the abyss over the past year, long after it the cataclysmic risks to the system were clear. Then, in mad improvisation, he allowed Lehman to fail. He refused congressional suggestions of a direct capital infusion into the banks — until it was clear it "buy toxic debt" scheme wasn't working and Britain and the EU led the way with direct infusions. Brownie, call your office.

Also typically Bushian was the stampede to act, on a bailout plan with no oversight that would have given Paulson unprecedented power. Iraq, anyone. Congress made some oversight improvements, and Obama has made it clear he will alter the "rescue" further if he wins the White House. But everybody had a gun to his or her head to "do something" as the markets collapsed.

Of course, we're not dealing with drowning poor, black folks in NOLA, here. So ultimately, the administration was willing to take any "socialist" action to save its wealthy friends in the investment banks, the hedge funds, etc. So maybe the Brownie analogy is not quite right. Yet we should be on guard. Remember another hallmark of Bush governance: enriching the politically connected and powerful through privatization. How could that happen in the "financial rescue"?

Now it's becoming clear

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