A rant:
LBJ gave the US the Great Society. He also gave us Vietnam, but let's
put that aside for the moment. A lot of the Great Society was really
meant to co-opt radicalism, but some of what he did looks almost
miraculous compared to what we have today. I would suggest we have
today is the Dithering Society, except for the rapidity with which the
administration responds the unmerited demands of finance.
Obama began with some vague ideas, sometimes even suggesting bold
measures. Once in office, we got Clinton retreads, with a handful
Goldman Sachs alumni placed in strategic positions.
So far we see few breaks with the loathsome Bush administration, either
on the international or on the national front. Every time some Obama
initiative seems to inconvenience them rich and powerful interest group,
it is modified mostly to their satisfaction. All the while, the hammer
falls on ordinary people.
One might at least expect competence, but even here disappointment
awaits us. So far the bailout seems to suggest little improvement over
the Paulson plan.
Even conservative economists recognize why bankrupt financial
institutions should be allowed to go bankrupt. Instead, the Obama boys
want to bail out the financial market by virtually guarantying hedge
speculators who buy the bad debt.
There is one bailout bill waiting for some action. The Los Vegas casinos
are hurting. I know: boo hoo. How could the government bail them out?
They could lend me money to gamble. I will be obligated to share my
winnings with the government, but they agree that I do not have to repay
the loans if I lose. So, I would stand to gain a great deal with little
risk.
How is my casino plan different from the present plan of creating a
market for "legacy" [Isn't that nicer than saying toxic] assets, other
than that financial firms will have to put up a wee bit of their investment.
The best we can hope for from Obama would be to continue to embarrass
himself with the obsequiousness toward rich and powerful in such a way
as to spark a massive protest comparable to the 1960s. Let's stop
dithering. Any takers?
--
Michael Perelman
Economics Department
California State University
Chico, CA
95929
530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
