Chicken Little Was Right by Stephen Pizzo

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Remember when the Berlin Wall fell in 1989 and Republicans claimed that Ronald Reagan's aggressive policies toward the Soviet Union had won the Cold War. In particularly they claim that Reagan's fabulously expensive "Star Wars" anti-missile system had forced the Soviets to spend so much on their own military projects that it bankrupted them. Nearly 20-years later America is building its own wall along our southern border, spending $12 billion a month fighting twin wars in Iraq and Afghanistan, while not investing in our aging, crumbling infrastructure and -- finally -- free-market radicals in this administration allowed the economy to be run into the ground by increasingly corrupt and self-indulgent players.

In 1930s the nation found itself in the same fix. Wall Street had been allowed -- even encouraged -- to run wild by Republican President Herbert Hoover. And, surprise, surprise, when left to their own devices Wall Streeters fouled their own nest, and everyone else's.Hoover's response was, first, to assure everyone that 'the fundamentals of the American economy are sound."

Then, as the economy continued to implode, Hoover created something called the Reconstruction Finance Corporation, (RFC) a federally-owned bank to bail out commercial banks by extending loans to them, much as the privately-owned Federal Reserve is doing today.That's pretty much what this administration has been up to this week.

But history teaches that Hoover's ploy failed. The last thing big banks needed was more debt... they had too much debt already. What they needed was for ordinary Americans to begin investing and spending again.

http://www.opednews.com/articles/1/Chicken-Little-Was-Right-by-Stephen-Pizzo-080920-445.html