Bobswern’s diary did a great job on the failures of TARP and the inadequate stimulus and jobs bill to fix this Republican-broken economy. But the roots of the continuing failure and the threat to the Democratic Party in the upcoming elections rests directly in Obama’s failure and the failure of Congressional Democrats to investigate, lay blame and hold responsible, both legally and economically, AIG, the FED, Goldman-Sachs and other entities who perpetrated this economic fraud and disaster. That’s where Greider’s article comes in:
"Although the AIG bailout was carried out in the waning days of George W. Bush’s presidency, the popular sense of injustice has deeply scarred Barack Obama, since he too adopted a forgiving approach toward culpable financial interests. Obama came to office intent on restoring public trust in government. His indulgence of the mega-banks led to the opposite result."
I'll suggest some actions to take and ask for yours over the fold.
Continuing with Greider's article published today in the Nation:
More to the point, the AIG story raises real doubts and suspicions about how the government will respond next time. Or whether the new financial reform legislation actually corrects government’s deference to the pinnacles of private financial power. Massive federal intervention was certainly necessary, the Warren panel agrees, including quick action to forestall AIG’s bankruptcy. But government declined to demand anything in return.
The AIG rescue was done in ways that had “poisonous effects” on the financial marketplace and public opinion, the report concluded. Cynical expectations were confirmed, both for citizens and financial players. Some financial firms are simply “too big to fail,” it seems; Washington will not let them collapse, no matter what the president claims.
The most troubling revelation in this story is the astonishing weakness of the Federal Reserve and its incompetence as a faithful defender of the public interest.
For the rest, see http://www.alternet.org/...
But let me point out, “next time” is now. As Bobswern has shown over and over, the fix has been all too inadequate and thus, all too temporary. The US has joined European nations in the conclusion that deficits are more important than recovery and jobs, thus any hope of outside rescue is gone, and clearly, US corporations are “cutting costs” by shipping even more stuff into the US. (see news on widening trade deficit)
So what can we do? Surely we could shrug our shoulders and hand Congress to the Republicans. That way lies even worse disaster because the whole country would lurch even further right and further into gutting government until no one can restore it. And someone who promises to do so will seize power, just as dictators did in the 1930s all over the world. Since our Democratic senators and House members and president will not act, we must take action ourselves. So what can we do?
I have several suggestions, and I hope you do to. Certainly we need legislation and investigations, but how do we light the fire under Congress and our President?
Number one, we need a temporary boycott on buying ALL non-US made products. We especially must target those produced by US firms overseas. Walmart should be number one on the list for it has broken the back of American manufacture and small retail firms. We should call for a “buy American” boycott until Congress changes the laws which have driven jobs overseas and rewarded corporations for doing so. AND we should demand that environmental and labor standards of the US should be imposed on all products allowed into the US. Even Tea Party members might join a “buy American” and SAVE YOUR JOB-SEND THEM A MESSAGE campaign.
Number two, we should flood Congress and the President’s email with demands for full investigations of the failure of TARP and the Fed. We must demand Geithner and Summers go, period and we must demand someone like Krugman or others who have been right all along replace them. And we must demand a full investigation be launched by Congressional panels, by an early return to session if need be.
Number three, if you haven’t already, send emails and letters to President Obama in support of Elizabeth Warren’s appointment to the Consumer Financial Protection Bureau.
That’s the top of my list for what we should do and what we can do without having the party or president or Congress lead the way. Maybe, if our Congress and President see just how desperate we are—desperate enough to begin to take matters into our own hands with the boycott—we can get the folks in Washington to take action to save their own hides.
Any other ideas?