Robert Reich Rocks!

[salin]

http://tpmcafe.talkingpointsmemo.com/2008/09/21/what_wall_street_should_do_to/index.php

What Wall Street Should Do To Get Its Blank Check
By Robert Reich - September 21, 2008, 1:48PM
The frame has been set, the dye cast. Treasury Secretary Hank Paulson, presumably representing the Bush administration but indirectly representing Wall Street, and Fed Chief Ben Bernanke, want a blank check from Congress for $700 billion or possibly a trillion dollars or more to take bad debt off Wall Street's balance sheets. Never before in the history of American capitalism has so much been asked of so many for (at least in the first instance) so few.

Put yourself in the shoes of a member of Congress, including our two presidential candidates. The Treasury Secretary and Fed Chair have told you this is necessary to save the economy. If you don't agree, you risk a meltdown of the entire global financial system. Your own constituents' savings could go down with it. An election is six weeks away. Besides, in the last two days of trading, since rumors spread that the Treasury and the Fed were planning something of this sort, stock prices revived.

Now - quick -- what do you do? You have no choice but to say yes.

But you might also set some conditions on Wall Street.

The public doesn't like a blank check. They think this whole bailout idea is nuts. They see fat cats on Wall Street who have raked in zillions for years, now extorting in effect $2,000 to $5,000 from every American family to make up for their own nonfeasance, malfeasance, greed, and just plain stupidity. Wall Street's request for a blank check comes at the same time most of the public is worried about their jobs and declining wages, and having enough money to pay for gas and food and health insurance, meet their car payments and mortgage payments, and save for their retirement and childrens' college education. And so the public is asking: Why should Wall Street get bailed out by me when I'm getting screwed?

So if you are a member of Congress, you just might be in a position to demand from Wall Street certain conditions in return for the blank check.



Five conditions at link. I couldn't agree more with what he writes.

[dkf]

1. I agree 100% with this one...

3. All Wall Street executives immediately cease making campaign contributions to any candidate for public office in this election cycle or next, all Wall Street PACs be closed, and Wall Street lobbyists curtail their activities unless specifically asked for information by policymakers. Why should taxpayers finance Wall Street's outsized political power - especially when that power is being exercised to get favorable terms from taxpayers?

[sandnsea]

2. These are sensible demands

that all American people will agree with. I think if Obama wants to drive home the point that he is about change, then now is the time to stand up and be counted.

[Overseas]

3. I like the 5 conditions. Used them in writing my representative. //nt

[KT2000]

4. "We are all at fault"

at least that is what I am hearing from the talking heads like Bloomberg today. This story is being reported as if everyone was in on the scam that caused this problem - and that cannot stand. I suppose that is supposed to make us buckle and let another travesty be passed. Sorry - not falling for it.

I was not in on this scam and I want to see some accountability from those who were. Reich's conditions shoule be the minimum - why not prison sentences for the CEOs?

[nancyr]

5. I am not at fault.

I have always lived within my means....I refuse to share the blame for this fiasco. The people that have caused this chaos do indeed belong in prison. Instead, we are to bail them out. This is quite a democracy, isn't it?

[RufusTFirefly]

6. Should be "the die is cast" not "the dye is cast"

Otherwise, I'm a big Robert Reich fan. One of the best from the Clinton days.

Always delightfully self-deprecating, I wonder what the 4'10" Reich thinks about the prohibition on selling short.

[felinetta]

7. They're trying to pull an extremely dangerous fast one!

Remember how fast they made everyone sign on to the Patriot Act? Well here they go again! NEVER EVER TRUST A REPUBLICAN ON ANYTHING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[salin]

8. Heck, just this past week they couldn't get ice to Houston!

[bluesmail]

9. Oh man, IF only...please. K&R

[shireen]

10. SEND THIS TO YOUR MEMBERS OF CONGRESS

That's one damned good set of demands! I'd love to see this turned into a petition and circulated as a viral email or something like that.

[intheflow]

11. I loved Robert Reich for years.

He's only one of two economists I know who can lay out logical economic plan in plain English. This is another sterling example.

[mucifer]

12. Wasn't he one of those responsible for NAFTA? I do like his other ideas.

But, NAFTA not so good.

[justaregularperson]

13. Yes, he plays both sides of the fence and is a little bit into Social Darwinism

He wants to support the little guy but his theories are part "supply side".