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Kuttner: Bush’s Financial Rescue (Non-)Strategy

Robert Kuttner, our favorite no-nonsense economic expert and author of Obama’s Challenge: America’s Economic Crisis and the Power of a Transformative Presidency, has an Op-Ed in today’s Boston Globe. He warns that the current financial crisis facing this country calls for “combined government recapitalization with tough regulation,” similar to what Franklin Roosevelt did in the 1930s. “But,” he continues, “the government-loathing Bush administration has pumped in capital only in fits and starts, and remains allergic to regulation.” Good luck, Economy!
Bush’s treasury secretary, Henry Paulson, former CEO of Goldman Sachs, went to Washington in 2006 with a blueprint for even less government involvement with Wall Street, not more. In the improbable role of emergency government financial czar, Paulson ran the rescues in the manner of a private investment banker. He viewed each collapse as an occasion for a merger, acquisition, or restructuring. Flying without a regulatory compass, Paulson and Federal Reserve Chairman Ben Bernanke extended taxpayer money and lines of credit from the Fed to get through each crisis of the day. Their strategy was to find white knights and erect firewalls. If Bear Stearns could be saved from bankruptcy by a shotgun merger with JPMorgan Chase, then all of Bear’s creditors on Wall Street would not take a hit. If Fannie Mae and Freddie Mac could be rescued with $200 billion of taxpayer money, maybe the mortgage crisis would not deepen. If the Fed could advance enough credit to brokerages and investment bankers that were not even part of the Fed system, maybe it would buy time to clean up their balance sheets. The strategy boiled down to allowing Wall Street to privatize the gains while government socialized the losses. After the fact – after more than a decade of letting Wall Street operate like a casino – the government had little choice: If a sufficiently large bank went bust, it could take the whole system down with it.
Read the whole article here.

Bullshit. *Charisma, Icon, Intelligence, Empty Sandwich

How does the word “bullshit” connect to Charisma, Intelligence and the notion of The Empty Sandwich?To find out the answer to this question we meandered through David Fleming’s Lean Logic. A dictionary unlike any other, Lean Logic encourages readers to actively and intellectually engage with its entries. These entries are often cross-referenced so that you […] Read More

From Farm-to-Table to Farm-to-Everything

No longer restricted to the elite segments of society, the farm-to-table movement now reaches a wide spectrum of Americans from hospital and office cafeterias to elementary schools and fast-casual restaurants.Nearly a century ago, the idea of “local food” would have seemed perplexing, since virtually all food was local. Today, most of the food consumed in […] Read More

The Three Cs of Farm-to-School

Most people know about the three “R’s” – reading, writing, and arithmetic. But, have you heard about the three “C’s”?If you, or your kid, is at a school that takes part in the Farm-to-School movement, then you may already know about them.October is National Farm-to-School month, and in their book Farm to Table, authors Darryl […] Read More

“Rules for Revolutionaries” Offers New Political Playbook for Activists

A riveting behind-the-scenes look at the “rules” used by the “revolutionaries” who helped harness the volunteer power that fueled Bernie Sanders’ historic, and insurgent, presidential campaign.Authors Becky Bond and Zack Exley led the Sanders campaign’s efforts to recruit and engage volunteers at an unprecedented level, which was crucial to the Vermont senator capturing 46 percent […] Read More

Born on Third Base: A Q&A with Author and Inequality Activist Chuck Collins

As inequality grabs headlines, steals the show in presidential debates, and drives deep divides between the haves and have nots in America, class war brews. Does it have to be this way?Can we suspend both class wars long enough to consider a new way forward? Is it really good for anyone that most of society’s […] Read More
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