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There’s already much debate about the merits of the administration’s plan to clean up toxic assets, but one person I spoke with – a well-connected Democrat representing a big investment firm — was absolutely crystal-eyed about the fundamentals:
Even as details are being worked out, he saw ample opportunities for his firm to make huge profits. Banks, hedge funds and other investors that take part in the plan cannot lose money, thanks to the government’s support and guarantees. Taxpayers, he said with a mix of regret and satisfaction, were getting shafted again.
Paul Krugman has it just right:
For the private investors, this is an open invitation to play heads I win, tails the taxpayers lose. So sure, these investors will be ready to pay high prices for toxic waste. After all, the stuff might be worth something; and if it isn’t, that’s someone else’s problem.
Incidentally, try to imagine if the Bush administration had floated this plan. Is there anyone from the liberal blogosphere who wouldn’t be denouncing this as a Wall Street giveaway? Particularly given the architects of the Obama administration’s plan? As Frank Rich wrote:
“Given that Summers worked for a secretive hedge fund, D. E. Shaw, after he was pushed out of Harvard’s presidency at the bubble’s height, you have to wonder how he can now sell the administration’s plan for buying up toxic assets with the help of hedge funds. It will look like another giveaway to his own insiders’ club. As for Geithner, people might take him more seriously if he gave a credible account of why, while at the New York Fed, he and the Goldman alumnus Hank Paulson let Lehman Brothers fail but saved the Goldman-trading ally A.I.G.
More from Ken Silverstein:
Commentary — November 17, 2015, 6:41 pm
The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.
In Havana, the past year has been marked by a parade of bold-faced names from the north — John Kerry reopening the United States Embassy; Andrew Cuomo bringing a delegation of American business leaders; celebrities ranging from Joe Torre, traveling on behalf of Major League Baseball to oversee an exhibition game between the Tampa Bay Rays and the Cuban national team, to Jimmy Buffett, said to be considering opening one of his Margaritaville restaurants there. All this culminated with a three-day trip in March by Barack Obama, the first American president to visit Cuba since Calvin Coolidge in 1928. But to those who know the city well, perhaps nothing said as much about the transformation of political relations between the United States and Cuba that began in December 2014 as a concert in the Tribuna Antiimperialista.
Percentage of registered Democrats who say that fishing is their favorite spectator sport:
Democrats would win more elections if black Americans died at the same rate as white Americans.
A former U.S. intelligence official said pornography constituted 80 percent of the material on jihadists’ seized laptops, and Starbucks and McDonald’s made porn inaccessible from their Wi-Fi networks.
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“Matt was happy enough to sustain himself on the detritus of a world he saw as careening toward self-destruction, and equally happy to scam a government he despised. 'I’m glad everyone’s so wasteful,' he told me. 'It supports my lifestyle.'”