[Democrat] Congressional leaders Dodd, Schumer and Frank all embraced the $700billion federal bailout from the beginning and remain its biggest champions. Alas, the only principled opposition to the federal bailout has come from the most crackpot wing of the Republican Party. As Jim Bunning, one of that wing’s spokesmen, protested, “This massive bailout is not the solution, it is financial socialism. It is un-American.” (These knee-jerk conservatives seem not to understand that the basic tenet of socialism requires the redistribution of wealth downward, not upward, as this bailout will accomplish)...

The proposals being floated by Democrats to soften the blow of the bailout will provide no relief from rising gas, food, housing and healthcare costs crippling those who rely on their own labor to earn tangible income — nor will it protect the thousands of workers who lose their jobs in the coming months. [More] . . read more

The current financial failures are systemic. The triumph of greed over discretion; of video games over symphonies. And the other failures are in allowing narrow worldviews to dominate the wonderful potential of the human spirit.

Women, asians, people of colour – stand up and unite! . . read more

But there's a simple and accurate answer: materialism and greed which has become a run-away epidemic in the contemporary capitalist world in general, and in the U.S. in particular, is the root of the problem. The oil crisis may be partly rooted in the desire of China and India to live a standard of material well-being comparable to that in the West, but it's mostly rooted in the speculative trading of oil futures that has artificially jacked up prices wildly. The collapse of the mortgage and banking industries has largely been a product of speculative investments as banks and mortgage companies sought to make super profits on their mortgage loans by turning them into monetary forms that could be traded and against which others could borrow money. It is this speculation, not solely the absence of the commodities, that has been a major source of the problem. . . read more

The good news is that, if the U.S. economy collapses, the Pashtun farmer in northeastern Pakistan, the Iraqi shopkeeper in Fallujah, the Iranian worker in Tehran, and the peasant in Venezuela, will no longer have to worry about being bombed or having their children mowed down by a U.S. helicopter gunship. The U.S. would no longer have the funds to pay for such foreign wars. And because a collapse of the U.S. consumer economy would also drag the rest of the world into a prolonged global slump, perhaps reminiscent of the 1930s, we might actually see a significant enough drop in carbon emissions from idled cars, factories and power plants that the global warming catastrophe that is threatening us all will be significantly delayed, giving humanity time to come up with a serious long-term response. [More] . . read more

In America, the bastion of free enterprise, the right wing U.S. government is paying $85 billion for 80% of the voting stock to keep the American Insurance Group operating. If AIG goes broke (as purists advocate) then (because re-insurance is global) a vast amount of mortgage insurance, business lending insurance and insurance covering risk in operations will collapse. No lender lends loan on a house that can’t be insured. Individuals & businesses risk bankruptcy with one uninsured accident. This ‘crisis’ is being manipulated but the U.S. has very little choice largely because its financial ‘powers that be’ brought this crisis on now while they have a president who is certain to do what they want. Why wait? They’re in control and they’ll never get a better puppet.  . . read more

In the 21st century, the US economy has been kept going by debt expansion, not by real income growth. Economists have hyped US productivity growth, but there is no sign that increased productivity has raised family incomes, an indication that there is a problem with the productivity statistics. With consumers overloaded with debt and the value of their most important asset--housing - falling, the American consumer will not be leading a recovery. A country that had intelligent leaders would recognize its dire straits, stop its gratuitous wars, and slash its massive military budget, which exceeds that of the rest of the world combined. But a country whose foreign policy goal is world hegemony will continue on the path to destruction until the rest of the world ceases to finance its existence.

Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day-to-day operations and must rely on foreigners to purchase its bonds. The government pays the interest to foreigners by selling more bonds, and when the bonds come due, the government redeems the bonds by selling new bonds. The day the foreigners do not buy is the day the American people and their government are brought to reality. This is not the financial position of a superpower. Will what happened to Lehman Brothers today be America’s fate tomorrow? [More]  . . read more

Before Kevin arrived Rupert had just been telling the camera “…some people may not like the bailout but it had to happen”. The “bailout” is the $700 billion W Bush proposal to…to… well the details are still being worked out but we can trust the W Bush regime to do something good. “It had to happen” because the financial ‘powers that be’ in the Empire State (NY’s logo) have decided they can’t trust either Obama or McCain and they want to control the next president’s agenda. Nothing happens for only one reason. They also want any money they can get and to make sure that any solution to the credit crisis (they’ve created) takes care of the upper class, executives and shareholders, before anyone else.

Murdoch’s good at presenting his desires as fait accomplits that are a single inevitable package but the devil is in the details. Obama has defined 4 key points that need to be in any rescue package – one point being support for the small homeowners with mortgages who are caught up in this crisis. McCain doesn’t list that as one of his criteria nor, surprisingly, do the bankers. Rupert, the head of the News-Fox empire, is pretty smart so if he was asked on camera he’d include the little people “if we can”.  . . read more

Does the banks' condition put the U.S. on the brink? What, because the banks won't lend without a bailout? I don't believe so. The banks remind me of the Sheriff in Blazing Saddles who takes himself hostage. The banks commit suicide by not lending. The banks won't lend without a bailout? Fine. Don't lend, banks. Don't lend starting now. You already have? Huh. Most banks in the DC area are advertising that they are not holding subprime mortgage-based assets and open for business to make loans.

If the banks won't lend and there is money to be made lending, someone else will lend, like the banks that are advertising. That's the free market, and the creative destruction should start now. If things are so bad that banks won't lend, the Taxpayers would be stupid to do so without the substantial potential for profit that the better plan provides. Paulson's plan provides only certainty, the certainty of losses. Why would anyone buy high for the certainty of selling low? [More] . . read more

We must be thankful for this sign that American democracy is not completely dead and supplanted by executive branch authority. However, whatever bailout package that emerges will fail unless it takes into account the following.

Any package that maintains the mark-to-market rule and permits the resumption of short-selling will undermine itself. In panic conditions without the existence of a market, the mark-to-market rule results in asset prices being driven below their values, thus eroding balance sheets and producing insolvencies. Short-selling permits short-sellers to profit by destroying the share prices of institutions suffering balance sheet problems, thus eliminating their ability to borrow and driving them into failure. A bailout, however large, that maintains the mark-to-market rule and permits short-selling will pour money into a black hole. [More] . . read more

But the fact is that our economic system is a lunatic and suicidal system, and it deserves to go down. Why lunatic and suicidal? It is predicated on the delusion, accepted on every level in every modern society, that unlimited Mahnolo Blahniks are possible on a planet of limited resources. Growth without horizon is simply not possible, but the delusion remains in force, a mass glue-huff and consensus trance hallucination. Endless growth on planet earth is by definition entropic; it implies its own end. Its pursuit is therefore suicidal.

What might replace the current insane system I couldn’t venture to say. Certainly, a lot of people will be hurt if we go down the rat-hole that appears our proper and fitting end. If events trend badly enough, a period of contraction, unemployment, economic depression, homelessness, tent cities, rising crime, boarded up storefronts, abandoned homes will be upon us faster than imaginable... Perhaps the crisis will bring about the devolution of the American living standard to something like sustainability. Perhaps it will only bring out a lot of pissed-off middle-classers who refuse to accept that the American way of life is sick and crazy and has no future. That kind of infantile resentment historically either leads to reform or fascism. [More] . . read more