G7 Members Force Bush Regime To Solve the Wall Street Debacle It Helped Cause
After refusing to face the facts, worsening the situtation, Henry Paulson, one of the flunkies in the criminal Bush regime that helped cause this financial debacle, under pressure from other countries, was forced to take the step progressive economists said was necessary to begin stanching this crisis, partial nationalization of banks, which is the antithesis of deregulatory, sefl-regulatory, greedy laissez faire Republican policies that caused this catastrophe.
Unfortunately, while the chickens came home to roost, Paulson, et al. are still the foxes guarding the hen house.
I wrote: "As the financial meltdown goes global, it highlights even more dramatically the disaster that is the Bush-Paulson plan which was the foundation for the bailout that Congress mistakenly approved.
"The $800 billion giveraway to the crooks on Wall Street is being distributed by the deregualtory, self-regulatory criminal Bush regime with very little oversight by Congress.
"From IPS News: "According to reports from lawmakers, many citizens had expressed concern about the size of the bailout, the fact that it is directed at Wall Street firms, and that Paulson, a former CEO of Goldman Sachs, a company with a financial stake in the bailout, would oversee the programme.
"On Monday, Paulson announced that he had picked Neel Kashkari to run the bailout programme. Kashkari is a 35-year-old assistant treasury secretary and former Goldman Sachs colleague, with about six years of total work experience since graduating from the Wharton School of Economics."
"On Monday, Paulson announced that he had picked Neel Kashkari to run the bailout programme. Kashkari is a 35-year-old assistant treasury secretary and former Goldman Sachs colleague, with about six years of total work experience since graduating from the Wharton School of Economics."
Congrress cannot permit this to continue. It must quickly rectify the terrible mistake it made in allowing Paulson and company, who helped cause this disaster, to oversee the distribution of taxpayers' monies to Wall Street cronies with little effective oversight.
McClatchy reports: "The Treasury Department confirmed Friday evening that it will buy stakes in major U.S. banks and financial institutions, announcing the bold move as leaders of the world's leading industrialized democracies agreed to guidelines for joint action but stopped short of taking coordinated steps sought by investors worldwide.
"The revelation that Treasury will take nonvoting stakes in U.S. banks adds to a growing list of unprecedented government interventions into private financial institutions not seen since the Great Depression.
"The list includes the seizure of mortgage-finance companies Fannie Mae and Freddie Mac, the rescue of global insurer American International Group with an $85 billion loan, emergency lending to several financial firms and the direct purchase of short-term promissory notes from U.S. corporations to bypass clogged credit markets.
"The announcements came after another turbulent day on world financial markets, and after Treasury Secretary Henry Paulson held an emergency meeting in Washington with the finance ministers and central bank presidents from the Group of Seven, which includes the U.S., Canada, the United Kingdom, Germany, France, Italy and Japan.
"In a news conference, Paulson said he told the visiting financial leaders how he'll carry out the recently enacted $700 billion U.S. financial rescue package. He revealed that he plans to go beyond purchasing distressed bank assets to take non-voting stakes in U.S. financial institutions to help recapitalize them.
"Their five-point guideline plan includes preventing bank failures; ensuring that credit and money markets return to normal functioning; enabling banks to raise capital from public and private sources; ensuring sufficient insurance of bank deposits; and restarting the secondary markets where mortgages and other loans are pooled into bond-like instruments.
"Perhaps the statement's most important point, however, was its message to the world that the G-7 powers are committed to coordinated and united action. Market analysts had stressed that such a stand was necessary to improve global confidence. That's the point Paulson emphasized in a statement he issued following the meeting:"
However, this not dismiss the fact that this 21st century Herbert Hoover Bush administration and its Republican rubber stamps in Congress like Sid McSame and other GOP supporters helped cause this financial debacle and must be held accountable.
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