The Coming Bank Bailout - Will democrats/progressive raise their voice?

[debbierlus]

The economic bailout plan as crafted by Timothy Geithner is a bad road. No CEO's lose their jobs. He states we can't nationalize the banks, yet, we do nationalize the banks by funding them. What we don't do is take any control in them. You have heard it called out, again & again, by the best democratic legislators and talking heads. Privatize profits. The Public incurs the loss and gets no say. And, they now plan on purchasing the banks crappy assets in bulk rather then through individual negotiations with each bank. We have lost 37 cents on the dollars (most likely more) for every dollar spent through the bank rescues under the old system of assuming debt. Can you imagine what worthless assets the banks will now write off onto the US citizens?

Also starkly missing from the plan -

Derivatives tax (a means of taxing stock & bond transactions). This would raise hundreds of billions and place the financing burden back on the players in the system rather then the tax payer.

Universal caps on interest rates for mortgages. The current stimulus plan (just for a moment, I am switching from the bailout to the stimulus) gives tax payers refunds of 400 dollars for individuals - 800 dollars per couple. It is peanuts and we can see from the past round of stimulus checks that it is ineffective. Yet, here we have a tax payer financed rescue of the banking system, and we aren't even negotiating to get ANYTHING for the money. Why not cap interest rates at 5%. Can you imagine how much stimulus hundreds of dollars a month in homeowners pockets would have on the economy.

Most worrisome is the goal of the whole plan is to RESTORE the broken economic system NOT change it. Now is the time we should be having a national discussion about precisely WHO we want the economy to work for (hint, hint, it’s the PEOPLE) and how we accomplish that goal. We need to reject the failed system that has left the majority of Americans financially struggling. The current plan works against that goal.

So, how do we change it? How do the people speak out against this plan? And, my biggest concern ~ Will people speak out against this plan because Obama supports it?

There’s the rub.

I am very concerned that the election of Obama has fractured the unity of progressive/democratic activists. The justified outrage has dimmed, and the willingness to 'give him a chance' has silenced much of the needed scrutiny and alternative political voice. Consider this…If BUSH appointed Geitner, the democratic & progressive community would be united against him and be up in arms. You would be seeing action alerts filling your e-mailbox. You would be seeing coordinated campaigns against the bailout plan.

Obama is leaning right in his governance. Our silence to this movement is our acquiescence. If we do not roar back now, we will be setting the tone for complicity in this right leaning policy movement. And, it will setback our coming struggle to advocate for real reform with health care and so many other important policies.

Right now, our entire economic future hangs in the balance. Our credit from other nations is going to run out. We can not remain silent while the same Wall St insiders who created the problem give carte blanc to the corporate executives who will lead us off a cliff.

And, Obama is the one who appointed this Pied Piper. He must be the one we insist call him back.

[leftstreet]

1. You make excellent points

This one in particular is right on:

Consider this…If BUSH appointed Geitner, the democratic & progressive community would be united against him and be up in arms. You would be seeing action alerts filling your e-mailbox. You would be seeing coordinated campaigns against the bailout plan.

K&R

[KittyWampus]

2. The rub is, all you mainly do on DU is bitch about the Obama Admin. You are a "Magic Wand Democrat".

[debbierlus]

3. Thank you. That comment perfectly illustrates my point.

[rudy23]

4. With catchphrases like that, you should post online for a living.

You'd be a great viral political poster. You'd have to change your handle often enough so that no one was onto you, though.

[Runcible Spoon]

5. What does that make you, a "Steaming Pile Democrat"?

:shrug: