Thursday, November 20, 2008

Bailout illegal

According to the Washington Post, it seems while all eyes were on the bailout late September, the Treasury Department sneaked through a significant change to two decades of corporate tax policy that corporate tax lawyers now say will give American banks a windfall of as much as $140 billion. The banks had been lobbying for this change for years.

Also analyzing the equity deals the Treasury negotiated with the banks, Naomi Klein is calling this "a trillion-dollar crime scene". Her article is a must read. And her book, The Shock Doctrine, outlines this disaster capitalism model. I think this book is a breakthrough in the analysis of how the neo-liberal, "free trade rules all" ideology has developed and how we can break it.

This is insane, the administration is robbing the federal treasury on its way out of the capital and the Democrats are afraid to anger the market. The free marketeers are holding us hostage.

I think when the Republicans realized that they couldn't privatize social security they figured out another ingenious plan - privatize the Treasury, and who better to do that than former CEO of Goldman Sachs, Hank Paulson.

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