Treasury secretary Timothy Geithner’s bank bailout proposal announced today is more similar than different to Hank Paulson’s bank bailout plan — based on the sketchy details presented. It protects banks and stockholders at the expense of taxpayers and citizens. Big bank CEO’s have convincingly demonstrated their incompetence at doing anything other than helping themselves to taxpayer bailout money. Banking corporations, on the other hand, showed their mastery of buying up other banks and shored up their bottom lines using taxpayer bailout money.
Under the new Treasury proposal banks and bank CEOs will receive more money from you and me. However the proposal “stop[s] short of ordering banks to issue new loans or requiring them to account in detail for the federal money,” as reported by the New York Times (link below).
No need to account in detail for the federal money. Are they serious? Call it Blank Check Bank Bailout II.
More people are wising up to democratize banks on economic grounds, including economist Dean Baker, co-director of the Center for Economic and Policy Research (link below). Democratizing banks can save money and address home foreclosures.
Absent from either article is the rationale to control banks on democratic grounds. Ever-growing financial institutions have corrupted politics through political campaign contributions/investments, lobbying, the writing of laws, and political implications to workers and communities of controlling credit.
We need to call on our Representatives and Senators to democratize banks.
Bailout Plan: $2.5 Trillion and a Strong U.S. Hand
By EDMUND L. ANDREWS and STEPHEN LABATON
Published: February 11, 2009
Geithner's Folly: The Bank Rescue Plan Is a Disaster in the Making
By Brad Reed, AlterNet. Posted February 11, 2009.