The fox picks a foxlet to guard the chicken koop

According to the Wall Street Journal, Treasury Sec'y Henry Paulson has picked an old Goldman Sachs buddy - Neel Kashkari - to run the Wall Street holdup. These guys are not just planning a simple bank holdup, but they are planning to invade the national treasury. They are planning to mug us all. And they're keeping it in the family. And one thing is clear - as it has been from the beginning - they think they can get away with anything.

McClone charade ends where it began: Focus on McCain

The latest news reports say that after a week of "will he or won't he?" speculation John McClone has finally announced that he will participate in tonight's presidential campaign debate at the University of Mississippi. According to the New York Times:

Senator John McCain’s campaign said Friday morning that he will attend tonight’s debate with Senator Barack Obama at the University of Mississippi, reversing his earlier call to postpone the debate so he could participate in the Congressional negotiations over the $700 billion bailout plan for financial firms.

Remember Clone's earlier announcement about what he was doing (NYT, 9/24/08):

Declaring that it was time to 'set politics aside,' Senator John McCain said Wednesday that he would temporarily stop campaigning and seek to delay Friday’s debate with Senator Barack Obama to return to Washington to help forge an agreement on a proposed $700 billion bailout of financial institutions before Congress.

If you've been wondering what this charade was all about. Here's how Clone "set[s] politics aside (NYT, 9/26/08):

His campaign issued a statement Friday morning saying he was now 'optimistic' that a bipartisan bailout agreement would be reached soon, citing 'significant progress' in the talks.

The statement was sharply critical of Mr. Obama, who, like Mr. McCain, returned to Washington on Thursday to take part in the bailout talks. The statement portrayed Mr. Obama as unduly partisan and insufficiently concerned with protecting taxpayer interests in the bailout negotiations, while Mr. McCain was framed as the leader of House and Senate Republicans seeking to reach a compromise agreement.

'The difference between Barack Obama and John McCain was apparent during the White House meeting yesterday where Barack Obama’s priority was political posturing in his opening monologue defending the package as it stands,' said the McCain campaign statement.

'John McCain listened to all sides so he could help focus the debate on finding a bipartisan resolution that is in the interest of taxpayers and homeowners. The Democratic interests stood together in opposition to an agreement that would accommodate additional taxpayer protections.'

Most observers say that Clone has contributed nothing to the discussions about the bailout. As of Tuesday he had not even read the White House three-page proposal and' as of this moment, he still hasn't stated his position on the current version of the "bailout" proposal. From the Pittsburgh Post Gazette:

It's hard to see the logic or value in Republican nominee John McCain's move [Wednesday 9/17] to suspend his presidential campaign, thus hoping to avoid his first debate with Barack Obama [to]night.

Presidential campaigns took place in 1864 in the midst of the Civil War, in 1932 with the Great Depression and in 1944 during World War II. Suddenly the nation's Republican standard-bearer needs to retreat from campaigning because Congress is working on a financial rescue plan.

.... While Mr. McCain professes concern, his move looks more like an irresponsible campaign trick, directed against Barack Obama and the voters.

It's clear that Clone created this circus because a week ago he was down in the polls, his vice-presidential choice was being ridiculed, so he tried to make himself the center ring of this political circus. Only time will tell if his Hail Mary pass will be caught for a touchdown or intercepted for a six-point loss.

TODAY, Sept.25, 4PM: Protest Bailout of Wall Street

The Bailout is Bull Sh*t!!"
Today, Sept 25, 4pm

Southern end of Bowling Green Park, in the plaza area

Bring stuff you want bailed out, or just yourself. You can also wear your Wall Street finest for a little role-playing!

Here's the e-mail sent out by my old Guardian colleague Arun Gupta (currently with the Indypendent), that began the move for this protest of the Wall Street bailout:

Everyone,

This week the White House is going to try to push through the biggest robbery in world history with nary a stitch of debate to bail out the Wall Street bastards who created this economic apocalypse in the first place.

This is the financial equivalent of September 11. They think, just like with the Patriot Act, they can use the shock to force through the “therapy,” and we’ll just roll over!

Think about it: They said providing healthcare for 9 million children, perhaps costing $6 billion a year, was too expensive, but there’s evidently no sum of money large enough that will sate the Wall Street pigs. If this passes, forget about any money for environmental protection, to counter global warming, for education, for national healthcare, to rebuild our decaying infrastructure, for alternative energy.

This is a historic moment. We need to act now while we can influence the debate. Let’s demonstrate this Thursday at 4pm in Wall Street (see below).

We know the congressional Democrats will peep meekly before caving in like they have on everything else, from FISA to the Iraq War.

With Bear Stearns, Fannie and Freddie, AIG, the money markets and now this omnibus bailout, well in excess of $1 trillion will be distributed from the poor, workers and middle class to the scum floating on top.

This whole mess gives lie to the free market. The Feds are propping up stock prices, directing buyouts, subsidizing crooks and swindlers who already made a killing off the mortgage bubble.

Worst of all, even before any details have been hashed out, The New York Times admits that “Wall Street began looking for ways to profit from it,” and its chief financial correspondent writes that the Bush administration wants “Congress to give them a blank check to do whatever they want, whatever the cost, with no one able to watch them closely.”

It’s socialism for the rich and dog-eat-dog capitalism for the rest of us.

Let’s take it to the heart of the financial district! Gather at 4pm, this Thursday, Sept. 25 in the plaza at the southern end of Bowling Green Park, which is the small triangular park that has the Wall Street bull at the northern tip.

By having it later in the day we can show these thieves, as they leave work, we’re not their suckers. Plus, anyone who can’t get off work can still join us downtown as soon as they are able.

There is no agenda, no leaders, no organizing group, nothing to endorse other than we’re not going to pay! Let the bondholders pay, let the banks pay, let those who brought the “toxic” mortgage-backed securities pay!

On this list are many key organizers and activists. We have a huge amount of connections – we all know many other organizations, activists and community groups. We know P.R. folk who can quickly write up and distribute press releases, those who can contact legal observers, media activists who can spread the word, the videographers who can film the event, etc.

Do whatever you can – make and distribute your own flyers, contact all your groups and friends. This crime is without precedence and we can’t be silent! What’s the point of waiting for someone else to organize a protest two months from now, long after the crime has been perpetrated?

We have everything we need to create a large, peaceful, loud demonstration. Millions of others must feel the same way; they just don’t know what to do. Let’s take the lead and make this the start!

AGAIN:
Today, Sept. 25. 4PM
Southern end of Bowling Green Park, in the plaza area

WMD spotted on Wall Street. Congress rushes to invade our pocketbooks

(Note: I've been working on these thoughts on the Bush bailout of his Wall Street friends for a few days. It's not finished, but I thought I would try something different. I am publishing it and will keep working on it. If you have any comments that would be really helpful. Thanks, Dan)

Remember those pesky WMDs that brought all but a few members of Congress to vote to give Bush (Cheney?) the power to invade Iraq. There was no time for questions and anyone who didn't go along was unpatriotic. Well we know how that went. The Democrats caved in and disaster followed apace. Here we go again. The Democratic cave in: the sequel.

Bush "experts" rush to Congress asking both parties to solve the latest problem by giving more power to the administration. "The sky is falling, the sky is falling," Chicken Little Paulson (Secy of the Treasury) cries and there's no time to waste asking questions or discussing alternative measures that might pick our pockets a bit less. If you hesitate for even a moment, you will be labled an obstructionist by Bush. That scares the votes out of the Democrats.

The Congressional Republicans are no problem for the administration's latest scam. They know who they work for and on which side their political bread is buttered. But will the Democrats - who ostensibly work for us - fall into line or will they ask questions and consider alternatives. At the moment it doesn't look promising. [Note 9/23: It's hard to tell yet, but there may actually be some resistence this time-even from Republicans.]

But maybe Candidate Obama will remember that he's also Senator Obama or perhaps Sen. Clinton can exercise some leadership and speak for us. So far the only opposing senatorial voice I've heard is Vermont's independent Bernie Sanders

I don't have a handy solution in my economic quiver, but it would seem as if the bulk of the solution should come out of the pockets of those who caused the problem and benefited from it, not from those of us who have been helplessly watching from the sidelines. Let's not forget that this crisis is a direct result of the right-wing ideology of deregulation. Much like the Iraq invasion and subsequent occupation was a result of a delusional strategy for solving the energy crisis (under the cloak of spreading the American way to the benighted Middle Eastern infidels by whatever means necessary). It's not surprising that, in yesterday's announcement, Bush said we shouldn't waste time looking for explanations of why it happened, but just let him protect us from the Wall Street WMDs.

Always be fearful of a Bush demanding speed and a "clean bill," which according to Paul Krugman (NYT, 9/22/08):

But Mr. Paulson insists that he wants a “clean” plan. “Clean,” in this context, means a taxpayer-financed bailout with no strings attached — no quid pro quo on the part of those being bailed out. Why is that a good thing? Add to this the fact that Mr. Paulson is also demanding dictatorial authority, plus immunity from review “by any court of law or any administrative agency,” and this adds up to an unacceptable proposal.

Since it was elected by the Supreme Court in 2000, the Bush administration has been devoted to achieving two results: (1) To enhance the powers of the imperial presidency at the expense of the other two branches of the government; and (2) to use this enhanced power to enrich the wealthiest portion of the population to the detriment of the middle and poorer sectors. Just as they used 9/11 to pass the Patriot Act and create the Homeland Security Department and ultimately to carry out the long-desired invasion of Iraq. They now want to divert a minimum of $700 billion to the richest corporations. And get absolute control over this "bailout." Here's what Bob Herbert says (NYT, 9/23/08):

Lobbyists, bankers and Wall Street types are already hopping up and down like over-excited children, ready to burst into the government’s $700 billion piñata. This widespread eagerness is itself an indication that there is something too sweet about the Paulson plan.

This is not supposed to be a good deal for business. 'The idea is that you’re coming here because you would be going bankrupt otherwise,' said Mr. [Dean]Baker [of The Center for Economic and Policy Research]. 'You’re coming here because you have no alternative. You’re getting a bad deal, but it’s better than going out of business. That’s how it should be structured.'

Here's a really good analysis by Katrina Vanden Heuval's Editor's Cut

Naomi Klein applies her Shock Doctrine theory to the current situation:

It would be a grave mistake to underestimate the right's ability to use this crisis -- created by deregulation and privatization -- to demand more of the same.