The Bush administration has already handed out almost half of the $700 billion in bank bailout money authorized by Congress but has not even filled the mandated oversight positions to review how it is being used.
Naomi Klein, author of The Shock Doctrine: The Rise of Disaster Capitalism, has described the handling of the bailout as “borderline criminal” because of this and other problems. Klein spoke to Amy Goodman of Democracy Now! on Monday to explain her accusations.
“We were all reassured that there was going to be transparency, accountability, legality,” Klein stated. “But now we’re finding out that, in fact, Henry Paulson has achieved his original goal by stealth, because there is no accountability, and lawmakers are very hesitant to challenge this. … Essentially, what the Bush administration has done is said, ‘We dare you to challenge us and be responsible for the Great Depression.’”
Klein sees three areas of borderline illegality. The first is that rather than being used to get banks lending again, the bailout money “is instead going to bonuses, is instead going to dividends, going to salaries, going to mergers.”
The second is that, without Congressional authorization, “the Treasury Department pushed through a tax windfall for the banks, a piece of legislation that allows the banks to save a huge amount of money when they merge with each other. And the estimate is that this represents a loss of $140 billion worth of tax revenue for the US government.”
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The third problem, which dwarfs the $700 billion bailout itself, is that “there’s another $2 trillion that’s been handed out by the Federal Reserve in emergency loans to financial institutions, to banks, that actually we don’t really know who they’re handing the money out to, because, apparently, it’s a secret.”
“If the Fed has accepted distressed assets as collateral in exchange for these loans,” stated Klein, “there’s a very good chance the taxpayers aren’t going to be getting this money back. … So that’s why we’re calling this the ‘trillion-dollar crime scene’ or the ‘multi-trillion-dollar crime scene.’”
Klein argued that Congress should be challenging violations of the bailout legislation, but instead “what they’re saying is, we can’t afford to enforce the law … that somehow, because there’s an economic crisis, legality is a luxury that Congress can’t afford.”
“I’m quite concerned,” Klein stated, “that what we’re seeing from Obama’s team is an accepting of this logic that they need to give the market what it wants, which is continuity, smooth transition, which is really just code for more of the same. … I think we should question all of it. Across the board, I think the assumptions are faulty.”
Klein is also concerned that rather than using the crisis as a mandate to fix the underlying problems, the world leaders at the recent G20 summit were talking about propping up the old system.
“Think about what these leaders could do if they really wanted to,” Klein suggested. “When you have a crisis like this, which so clearly shows the need for those types of regulations, when you have an election like there just was in the United States, where people have said clearly that this is a priority, the leaders have an opportunity to act. … But they blew that opportunity, and they actually called for less regulation.”
“This crisis isn’t over,” Klein warned, “and the same people who justified this bailout, who clamored for this bailout, are the very people who are going to turn around and say to Barack Obama, ‘We can’t afford for you to make good on your election promises. We can’t afford universal healthcare.’”
“The money has been given to the people who needed it least, and it’s going to be used to justify austerity measures imposed against those who need it most,” Klein concluded. “It’s going to be used to justify cuts to food stamps. It’s going to be used to justify cuts to Social Security, to health care, let alone being used to justify why more ambitious plans for a national health care program, for green energy are not affordable. So people have to be ready for this. You know, the next shock is yet to come.”
Democracy Now! has a full transcript of Naomi Klein’s interview.
This video is from LinkTV’s Democracy Now!, broadcast Nov. 17, 2008.
November 19th, 2008 at 5:45 am
There is no crime here. The people in charge are of a more pure bloodline. They will take humanity into their evolutionary destiny but they need to feed off of us to accomplish this task. We should all learn to sit down and shut up and acknowledge that lucifer is all good and all evil and that the death of those who are now fighting amongst our selves and believing all the lies and generating the fear vibrations for lucifer’s friends to feed off of is good and evil and pure and death giving. Feed the fires of Lilith with our charred lifeless bodies. We all need to be sacrificed so unabated evil will rule the earth in the harsh light until they too destroy themselves in the name of the love of death. We need the police and military forces to be completely duped into digging deep mass graves for us and scream when they are pushed down into the charred cadavers by those whom they were taught to trust.
November 19th, 2008 at 5:45 am
When you loose the integrity everything you do afterwords is legal and moral.
November 19th, 2008 at 5:57 am
Democrats are gutless, but more importantly, the democrats who vote for the democrats don’t have a freakin clue.
November 19th, 2008 at 6:01 am
“borderline criminal” ??????? how about outright thiefs !!!!!!!!!!!!!! G 20 members just want to prop up the existing failure ?????????? how about stepping down instead !!!!!!!!!
http://www.youtube.com/profile.....iew=videos
goldieshouse.piczo.com
November 19th, 2008 at 7:47 am
The only reason they wouldn’t inquire into the matter of $2T would be because they either got their piece, or are too pussy to squeak an opinion lest it cost them their position. If you want to see a real world leader forget Obama, he reminds me of a used car salesman and his wingman is ex-Israeli special forces? What?!
Keep your eye on Putin, this guy puts corrupt bankers and financers in jail where they belong. In fact, he’s the only player out there not getting on his knees every time a zionist enters the room.
November 19th, 2008 at 7:58 am
I thought “borderline criminal” sounded was a little weak myself. Why didn’t she say what was really on her mind ? What a pansy.
November 19th, 2008 at 8:43 am
Read the full transcript. Seriously, she’s the best analyst on all of this because she has broad and detailed knowledge allowing her to call this for what it is: part of a pattern. Half of the things she speaks of aren’t mentioned elsewhere, and are clear indicators of corruption and mismanagement.
November 19th, 2008 at 10:03 am
thats how you make a 3rd world country….
the goverment spends all the money, then people stop paying tax, because they don’t trust the goverment, then the country falls apart…
November 19th, 2008 at 10:07 am
If 300 million American citizens threaten to withhold Taxes until there is transparency by the Treasury of the five trillion bail-out, this would be more effective that congress and the Senate could ever do
November 19th, 2008 at 10:07 am
Naomi is a perfect example of the standards which all truth telling journalists should aspire to.
She is always reluctant to go too far down the road of opinion and theory, preferring facts and verifiable events instead. Read her books, they are fat fat fat with source checks, references and sources.
As a 911 truther, concerned with Chemtrails, our “next” 911 false flag attacke and more wars in Iran, I wish there were more people like Naomi out there.
Generally I enjoy this site, but I am often disgusted with the blatant stupidity and shoddy reporting that goes on here.
Case in point, the MASSIVE SPIKE IN GUNS SALES DUE TO THE OBAMA ELECTION WIN
Turns out it DID NOT happen, that’s right folks.
So maybe Alex should stop tarnishing his own good work by pandering to racist rednecks with tripe like that and stick to honest reporting. This site last week had non stop stories on the spike in gun sales, which are now shown to be lies.
Retraction? No.
Link to the new truth about no spike related to Obama? No.
Credibility? Fading.
google “Slate, Crazy About Guns” if you want to know the truth.
PS Obama’s new pick for Attorneys General defended Chiquita brands in court for their murder rape and assault of honest workers in Guatemala and Colombia, so a big huge Fuck You to all the fools who voted Obama.
November 19th, 2008 at 10:19 am
We really need to organize in force and do some citizen’s arrests. This is blatent theft. The US population will rise in support if we arrest those responsible for the theft of our money. It is the way a revolution works… Everyone has to be united. Perfect storm for a bloodless coup.
November 19th, 2008 at 10:44 am
Start the REAL Revolution
http://www.campaignforliberty......?view=4764
November 19th, 2008 at 12:03 pm
“If 300 million American citizens threaten to withhold Taxes until there is transparency by the Treasury of the five trillion bail-out, this would be more effective that congress and the Senate could ever do”
They can print money all they want, taxes are not about raising revenue on the federal level. It is a mechanism for control.
November 19th, 2008 at 1:01 pm
This entire WALL STREET FAILURE is a contrived orchestrated event to shift the full value of america away from america so that america can claim “BANKRUPTCY” to the nations of the world of which it is HORRIBLY IN DEBT TO. As it stands now the wealth of the financial industry has been shifted over to Israeli banks: Leumi. Bank Hapoalim, Israel Discount Bank etc all of whom have been the recipients of hundreds of BILLIONS of dollars each of money from the financials like Lehman, Merrill, Goldman, Bear, etc etc…and that now that the bulk of the wealth of america is there, the repugnatcans will let america fall into DISASTER under the Democrats/Obama and then will, after complete failure is achieved, step back up to the presidency and “FIX” things…. To further the problems of america Paulson, Bernanke are furthering the THEFT to essentially put a nail in the coffin of america.
So everyone prepare for soup lines, violence, suicides, absolute poverty, monetary failure, riots etc etc..IT IS COMING
November 19th, 2008 at 2:24 pm
To bad we can’t get a country like Russia or Iran to join a pact. Take them down. Fire a few non-nuclear satan missiles at the Fed Reserves at nite. Since the money is only paper now just people are willing to accept it. Now people buy gold because they learn its worthless.
November 19th, 2008 at 2:58 pm
WE are the people who are informed, kinda!!!So we should try to inform the stupid FUCKS but they look at us like we are the ones DESTROYING AMERICA!!I hope they wake up!!Before THEY end up in the mass graves OUR MASTERS put them in!!!
November 19th, 2008 at 3:36 pm
the only way for USA to go out of this money situation is if they come out in the world with some fucking alien technology… but i dont think they will do that
November 19th, 2008 at 3:56 pm
To #10
I consider myself a hippie 55 Years old
I wanted to do away with all guns at one time
Then I had a time when 30 youths attached my house because I came to the aid of an elderly woman who had lived her whole life in her home and was been terrorized by these animals They smashed my window and spread glass all over my infant sons crib which he was not in at the time
I went out with my shotgun and the jerk said hey look he has a toy gun I raised to my shoulder and fired out over the bay Well you never saw 30 punks run so fast
If I did not have the means to defend myself & family I would have been severly hurt
That was 25 years ago and just last month I bought an Ak47 as I think the game will be bigger this time but was feeling a little guilty so I spoke with some of my old hippie friends and when I told them what I did I found out they also had purchased all kinds of guns
If that is reflective of the Baby Boomer generation a lot more people are thinking the same thing I am so gun sale can do nothing but go up
Try finding some ammo prices are rising all the time as well as out of stock
Guns are selling at a higher price then when I bought mine last month and also out of stock
I Know something is coming and real soon so better to be prepared and resist like a man then give in like a wimp
Always remember “The Truth Will Set You FREE”
November 19th, 2008 at 5:45 pm
I find it horribly sad that all of you sit here and discuss the many ways in which this once strong and wonderful nation is plummeting into a downward spiral at the hands of a small group of megalomaniacal banking bastards – but very few IF ANY of you will actually get off your asses and do anything about it.
I will be attending the END THE FED! rally in New York City this weekend, supporting the cause of ending the traitorous, floundering and frankly illegal Federal Reserve Bank. Those of you who want to see some real change go down in this country better take it upon yourselves to stand up for yourself – no one else will.
URL:
http://endthefed.us
LOCATION:
New York Federal Reserve
33 Liberty St
New York, NY 10045
(212) 720-5000
I find it pretty goddamn ironic that the Federal Reserve building for the NY district is on LIBERTY Street. Is that someone’s idea of a sick joke???
Let’s take a step in the right direction and actually DO SOMETHING ABOUT THIS UNNECESSARY BULLSHIT instead of hiding behind monitors and crying revolution.
Or, you can think of it this way: “If you sit now, you’ll have stood for nothing.”