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So Obama is literally handing the next election to Wall St.

Isn't that a cheerful thought?

Indeed!  It is the reason that, for the first time in a very long time, I have embraced the old Leninist philosophy of "The worse, the better!"

The only real hope is if the financial crisis gets so spectacularly bad so quickly and so outrageously that Obama has no choice but to dump Geithner, Summers and all of the Market True Believers and very forcefully and publicly make the case for holding the culprits in the financial sector accountable in massive criminal and civil investigations, use the I.R.S., the Fed, the SEC CFTC, etc. in such ways as to paralyze their financial capability, PUSH THROUGH CAMPAIGN FINANCE REFORM, and go after all the wealth that is recoverable.

Contrary to self serving assertions, a direct assault on the wealth of the owners of the financial sector will not harm the economy, as they have withdrawn their money from productive investments precisely because of the mess they have made of it.  The government could extend an olive branch in the form of 25 year long bonds at, say 4%, en lieu of an annual tax on total assets.

Conceptually, there are clear ways out of the current situation.  Practically, it will require a massively greater crisis for this to be possible, if even then.  But, if Obama has not brought himself to make decisive moves against the financial sector by year's end, all will probably be lost and he will have handed the looters the whip handle.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Mar 23rd, 2009 at 12:15:03 AM EST
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ARGeezer:
Indeed!  It is the reason that, for the first time in a very long time, I have embraced the old Leninist philosophy of "The worse, the better!"

Absolutely spot on, ARG. That is exactly why solveig and I dance a little jig each morning when we read the latest financial news......

But my take on it is that the main part of the solution, will be P2P financing spreading virally and implemented from the ground up.

ARGeezer:

Contrary to self serving assertions, a direct assault on the wealth of the owners of the financial sector will not harm the economy, as they have withdrawn their money from productive investments precisely because of the mess they have made of it.  

There's no need to assault them. Just demonstrate to them that the solution being offered is a better one than anything else. If they agree, they join in. if they don't, they will wither on the vine.

Politicians can facilitate the process and surf the wave, I think. If Obama were to update Henry George.......

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Mar 23rd, 2009 at 08:48:07 AM EST
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