Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Showing Original Post only (View all)Matt Taibbi's big con [View all]
Matt Taibbi's big con
by citizen k
Previously published here.
Matt Taibbi is so good at whipping up indignation about the evil bankers that it's easy to overlook the crackpot and diversionary nature of the story he is telling. It would be useful if there was public pressure, for example, to provide a postal bank that would give people an alternative to commercial banks or if the government made low cost loans available to businesses or municipalities (instead of just to banks) so that Wall Street's casino investment mentality could not cripple the economy. Tax policy that rewarded long term investment and penalized gambling with other people's money would also be useful. But Taibbi and others have displaced discussions of such options with confused and misdirected anger. For example, once he has developed the narrative a bit in his latest, he offers up the following absurd line:
David Vitter and James Inhofe, two of the worst, most despicable, most irresponsible Senators in the history of the United States were - get this -"mad about ... lack of oversight" in TARP. And because of this sudden rush of integrity and public spirit, not because they were unprincipled partisan hacks angry that Barack Obama was taking office a week later, they tried to shut off the money spigots after Paulson and G. W. Bush had already handed out $300 billion to Wall Street. That's what Taibbi wants you to believe. On second thought, "crackpot" is too polite.
The Vitter/Inhofe resolution was also sponsored by Bunning, Sessions, DeMint, Barrasso, Enzi and Brownback- an all star cast of terrible Senators. And Taibbi pivots from the righteous indignation of Diaper Dave Vitter to the fulminations of Neil Barofsky, the guy GW Bush appointed as TARP Inspector General and whose complaints Taibbi takes as unquestionable truth. Mr. Barofsky, it turns out, was also a big fan of GOP politicians.
Issa and Grassley - nearly at the same level of moral integrity and public service as Vitter. But here's something just as important that Taibbi does not say: the failure of that Vitter/Inhofe resolution is what allowed President Obama and Treasury Secretary Geithner to rescue the auto industry with TARP funds. In fact, the auto rescue, by far the biggest use of TARP funds by Obama's Administration is never mentioned in Taibbi's article. Never mentioned- like it didn't happen. Of course the Treasury under Tim Geithner did not just rescue the auto industry, it rescued the credit unions, provided billions of dollars of TARP loans to small banks, including labor union owned banks, and retrieved almost all the money Bush and Paulson had given to the big Wall Street banks. Taibbi makes strenuous efforts to dance around the last part - in fact he implies the opposite.
But in fact, with one exception everything Summers promised did materialize - especially the exit. Almost all of the money that Bush and Paulson gave to Wall Street came back to the public under Obama and Geithner. To avoid the problem this fact presents for his story, Taibbi uses a lot of invective:
Actually, the government never committed more than $450billion, but what's an additional $250billion when it gets in the way of a good story? Or how's this on Larry Summers?
- more -
http://www.dailykos.com/story/2013/01/06/1176751/-Matt-Taibbi-s-big-con
by citizen k
Previously published here.
Matt Taibbi is so good at whipping up indignation about the evil bankers that it's easy to overlook the crackpot and diversionary nature of the story he is telling. It would be useful if there was public pressure, for example, to provide a postal bank that would give people an alternative to commercial banks or if the government made low cost loans available to businesses or municipalities (instead of just to banks) so that Wall Street's casino investment mentality could not cripple the economy. Tax policy that rewarded long term investment and penalized gambling with other people's money would also be useful. But Taibbi and others have displaced discussions of such options with confused and misdirected anger. For example, once he has developed the narrative a bit in his latest, he offers up the following absurd line:
Republican senators David Vitter of Louisiana and James Inhofe of Oklahoma were so mad about the unilateral changes and lack of oversight that they sponsored a bill in January 2009 to cancel the remaining $350 billion of TARP.
David Vitter and James Inhofe, two of the worst, most despicable, most irresponsible Senators in the history of the United States were - get this -"mad about ... lack of oversight" in TARP. And because of this sudden rush of integrity and public spirit, not because they were unprincipled partisan hacks angry that Barack Obama was taking office a week later, they tried to shut off the money spigots after Paulson and G. W. Bush had already handed out $300 billion to Wall Street. That's what Taibbi wants you to believe. On second thought, "crackpot" is too polite.
The Vitter/Inhofe resolution was also sponsored by Bunning, Sessions, DeMint, Barrasso, Enzi and Brownback- an all star cast of terrible Senators. And Taibbi pivots from the righteous indignation of Diaper Dave Vitter to the fulminations of Neil Barofsky, the guy GW Bush appointed as TARP Inspector General and whose complaints Taibbi takes as unquestionable truth. Mr. Barofsky, it turns out, was also a big fan of GOP politicians.
For instance, like so many actors in the capital, Mr. Barofsky develops backdoor relationships with the offices of friendly Republican lawmakers like Senator Charles E. Grassley of Iowa and Representative Darrell Issa of California, leaking information back and forth to shape news coverage. Then he wonders why Treasury keeps him in the dark? (NYT)
Issa and Grassley - nearly at the same level of moral integrity and public service as Vitter. But here's something just as important that Taibbi does not say: the failure of that Vitter/Inhofe resolution is what allowed President Obama and Treasury Secretary Geithner to rescue the auto industry with TARP funds. In fact, the auto rescue, by far the biggest use of TARP funds by Obama's Administration is never mentioned in Taibbi's article. Never mentioned- like it didn't happen. Of course the Treasury under Tim Geithner did not just rescue the auto industry, it rescued the credit unions, provided billions of dollars of TARP loans to small banks, including labor union owned banks, and retrieved almost all the money Bush and Paulson had given to the big Wall Street banks. Taibbi makes strenuous efforts to dance around the last part - in fact he implies the opposite.
And lastly, he (Larry Summers) promised that the bailouts would be temporary with a "plan for exit of government intervention" implemented "as quickly as possible."
The reassurances worked. Once again, TARP survived in Congress and once again, the bailouts were greenlighted with the aid of Democrats who fell for the old "it'll help ordinary people" sales pitch. <..>
But in the end, almost nothing Summers promised actually materialized.
But in fact, with one exception everything Summers promised did materialize - especially the exit. Almost all of the money that Bush and Paulson gave to Wall Street came back to the public under Obama and Geithner. To avoid the problem this fact presents for his story, Taibbi uses a lot of invective:
It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed.
Actually, the government never committed more than $450billion, but what's an additional $250billion when it gets in the way of a good story? Or how's this on Larry Summers?
- more -
http://www.dailykos.com/story/2013/01/06/1176751/-Matt-Taibbi-s-big-con
I simply can't wrap my head around why anyone would credit Republicans for this.
The TARP program originally authorized expenditures of $700 billion. The DoddFrank Wall Street Reform and Consumer Protection Act reduced the amount authorized to $475 billion...
http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program.
http://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program.
Note:
Kos Media, LLC Site content may be used for any purpose without explicit permission unless otherwise specified
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
167 replies, 19809 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (33)
ReplyReply to this post
167 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
This branding of anyone wo doesn't sing "Happy Days are Here Again" as a GOP stooge is disgusting
leveymg
Jan 2013
#133
I'm saying Taibbi is dishonest because he makes shit up out of whole cloth.
RomneyLies
Jan 2013
#134
Links and quotes are your friends if you want to be persuasive. "Making shit up" isn't.
leveymg
Jan 2013
#135
The OP is essentially nonfactual. Hundreds of billions of TARP loans have never been paid back
leveymg
Jan 2013
#140
He is a limited hangout- got everyone riled up about the mortgage fraud, then dropped the subject
No Compromise
Jan 2013
#10
Semantic battle royal: Taibbi mentioned pukes; he never said they ''saved'' us from TARP.
Octafish
Jan 2013
#25
Isn't if interesting that the folks defending Taibbi use fuller quotes, while
MannyGoldstein
Jan 2013
#28
"the senior economic adviser to President-elect Barack Obama...begged legislators "
ProSense
Jan 2013
#30
So what? It took a Socialist to get an audit of the Fed tacked onto TARP to give us a true picture.
Octafish
Jan 2013
#39
Obtuse much? The point demonstrates the long line of Wall Street-Washington criminality, ProSense.
Octafish
Jan 2013
#53
Says you, an anonymous poster online. Taibbi signs his name to what he writes.
Octafish
Jan 2013
#69
Nah, the people buying into Taibbi's bullshit are like the followers of Fox News
RomneyLies
Jan 2013
#88
Be aware there are certain right wing think tank elements that patrol these boards,
grahamhgreen
Jan 2013
#76
People like Taibbi are always attacked by establishment-sorts and their apologists.
Marr
Jan 2013
#35
*Never mentioned -* as it would defeat the both parties are the same message.
freshwest
Jan 2013
#45
I think he's just saying the TARP was so bad that even some Republicans objected.
snot
Jan 2013
#162
Thanks for an interesting & thought provoking thread, all, & for the review of what happened too. nt
patrice
Jan 2013
#56
Larry Summers is a dirty thieving bastard, a traitor to this country. He encouraged Clinton
jtuck004
Jan 2013
#57
Like Obama's repeated claim that Social Security was not started to help retirees? nt
MannyGoldstein
Jan 2013
#71
"Worked" to do *what* exactly? It firmed up the status quo in the nation with the worst
Romulox
Jan 2013
#77
I agree with this, except, if PO & they had let it all go, could we expect whatever came out of
patrice
Jan 2013
#118
No one needs to be a bankster apologist. They are criminals. The belong in jail.
grahamhgreen
Jan 2013
#74
Agreed. I can't believe the bankster apologists aren't funded by Koch money or the like.
grahamhgreen
Jan 2013
#104
It's unbelievable. I can't believe they aren't part of a thoughtlessness tank
grahamhgreen
Jan 2013
#115
I think, and this is just my opinion from reading quite a few books on the bailout,
Sekhmets Daughter
Jan 2013
#143
"Actually, the government never committed more than $450billion" = semantic bullshit.
HiPointDem
Jan 2013
#124
How typical of the damage control brigade. The Kos piece is an undocumented opinion written
Egalitarian Thug
Jan 2013
#144