Monday, March 30, 2009

The bankers you have

I've been trying to figure out why Obama hasn't moved more aggressively to assert government's role. What!???, you may say. He's borrowing and spending trillions.

His lack of aggressiveness is that he's handing the money over to the same people who made this diarrhea soup, as if he expects them to change their minds and their hearts about how the markets ought to work and what their cut should be. He should be clawing back money from them instead of making whole their bonuses, their stupid investments, and their shareholders (o.k., not whole exactly).

The credit markets are still blocked because everyone knows that what Atrios calls the big shitpile is still hugely overvalued, and the financial institutions want us to take the hit instead of them.

For some reason, though, Obama and Geithner believe that we need these people to run the system and to unwind all the deals. They think they're going to economic war with the bankers they have, not the bankers they wish they have.

Then there's the fear that wingnuts will scream socialism even louder. So what! Embrace it, tell them it's temporary, and then make it happen. Nationalize failed banks and financial institutions. They don't seriously think they're going to convince the idiots that Newt Gingrich is fomenting anger among, do they?

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