Bloated International Banks-Too Big Not to Fail- Do not Resusitate Mega Banks!

[terisan]

MOTHER JONES MEETS ELIOT SPITZER: REBUILDING OUR ECOMOMY, NOT THE BANKS AND GET RUBIN and SUMMERS OUT OF THE WHITE HOUSE!

Eliot Spitzer( sex scandal former governor and Nemesis of Wall Street Thieves) seems to be the Clear Thinker on the Economic Crisis.

Spitzer, a populist in a suit, decries the "concentration of power--political as well as economic--that resided" in the Big Finance institutions that have dragged the economy down. He writes:

Imagine if instead of merging more and more banks together, we had broken them apart and forced them to compete in a genuine manner. Or, alternatively, imagine if we had never placed ourselves in a position in which so many institutions were too big to fail. The bailouts might have been unnecessary.
In that case, vast sums now being spent on rescue packages might have been available to increase the intellectual capabilities of the next generation, or to support basic research and development that could give us true competitive advantage, or to restructure our bloated health care sector, or to build the type of physical infrastructure we need to be competitive.
This is the opposite of Rubinomics. Spitzer is contemplating what must be done to rebuild our economy so that it truly competes internationally and, most important, generates wealth--not what must be done to rescue the high-fliers who have crashed and who seem to hold our credit lines and economy hostage. It's a perspective not heard within the mainstream too often these days. His views could have been influential when the first Wall Street bailout was pulled together in September--had he been part of the public discourse

More at <http://www.motherjones.com/mojoblog/archives/2008/12/11181_obama_spitzer_slate_summers.html>