How Wall Street Can Bail Itself Out Without Destroying The Dollar | CommonDreams.org

How Wall Street Can Bail Itself Out Without Destroying The Dollar | CommonDreams.org

by Thom Hartmann

For Grover “Drown Government In The Bathtub” Norquist, this bailout deal will work out very well. At a proposed cost of $4,780 per taxpayer, it’ll further the David Stockman strategy of so indebting us that the next president won’t have the luxury of even thinking of new social spending (expanding health care, social security, education, infrastructure, etc.); taxes will even have to be raised just to pay for the bailout. It’ll debase our currency, driving up commodity prices and interest rates, which will benefit the Investor Class while further impoverishing the pesky Middle Class, rendering them less prone to protest (because they’re so busy working trying to pay off their debt). It’ll create stagflation for at least the next half decade, which can be blamed on Democrats who currently control Congress and, should Obama be elected, be blamed on him.

But there’s another way: Create an agency to fund the bailout, loan that agency the money from the treasury, and then have that agency tax Wall Street to pay us (the treasury) back.

It’s been done before, and has several benefits. READ the whole article—>

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One response to “How Wall Street Can Bail Itself Out Without Destroying The Dollar | CommonDreams.org

  1. If the problem is as stated: there isn’t enough bank-to-bank lending going on to keep the economy running, why isn’t the government starting a new lending institution? It seems a simple enough way to solve that problem.

    If you force them to charge ¼ point higher than the average inter-bank loan, then they will go out of business automatically as the situation recovers. No sunset law required.

    If the bank they lend to can’t repay it then it is going out of business and they take over the bank, getting most, if not all, of the money back.

    It doesn’t do the job they want (the Republicans are cashing out, guys) but it solves the problem stated.

    What is the real problem? It looks like this lending thing is so simply solved, I think it is a lot like WMDs: the way to justify a course of action already deemed necessary to accomplish Mr. Bush’s agenda.

    I’m not real sure what that agenda is. Is it paying off his cronies? Is it putting us at a severe disadvantage as the WWIII (the economic war) heats up?

    It will be too late when we find out. Of that I am sure.

    Good luck, and good night.

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