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View Diary: "79% of investors have no trust in the financial system." (154 comments)

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  •  And the gangrene here is the myths (0+ / 0-)

    propagated by neoliberal "economists" across in econ classes for decades. And that reinforces it in the popular culture.

    The key here is for progressives to understand that they have bought, without realizing it, the myths propagated by

    • Banksters ("we're exposed, it's only on the upside, but heh")
    • Pete Peterson -- goal: eliminate Social Security in favor of market investment
    • the Kochs -- goal: dismantle regulation so corporations can pollute the commons
    • the Waltons -- "would you like some chains with your groceries"

    and their accolytes.

    Yes, it's rigged and so powerful that the 79% can't help themselves (cf., comments below here and here)

    The answer is to learn what the modern monetary reality (the descriptive economic theory known as "Modern Monetary Theory") we can use to de-power those and lessen the rigging.

    The cure is within our reach. The tools are already there. And until (the bulk of) Progressives/Dems learn this and help spread the knowledge, Obama (a lawyer) who, fooled by the same myths and enamored of neoliberal economists or other lawyers enamored of neoliberal economists, the societal goals we (you, me, Obama) profess to share will remain not only unobtained, but by defeated for the sake of the BANKSTERS, et al., above:

    Lew's training was as a lawyer. From CBS News:
    Obama is clearly comfortable bringing another ex-Wall Streeter into an administration that, beyond a recent ratcheting up of populist rhetoric, has done relatively little to rein in the financial industry.
    That, in turn, reflects the ease with which Washington hands like Lew shuttle between the Street and the Hill. Case in point: Lew's predecessor as budget chief, Peter Orszag, left the agency and joined Citi as vice chairman of global banking. A job in politics is no longer a back-door to a lucrative job in banking -- it's a red carpet. The revolving door keeps spinning.
    The Citi [alternative investments] division ultimately lost billions. As for Lew, he naturally made big bucks during his three-year stint at Citi, including a roughly $950,000 bonus in 2009 -- after the company's federal bailout.
    Lew helped establish finance policy under President Clinton.
    Lew served as OMB chief from May 1998 to January 2001 during the Clinton administration, when Clinton signed into law the Financial Services Modernization Act of 1999 and the Commodity Futures Modernization Act of 2000 -- two pieces of legislation at the heart of the deregulation of Wall Street. The first repealed the law that had long kept commercial banks from offering products or engaging in services more common with investment banks; the second "eliminated virtually all regulation" over the kind of derivatives that trade outside regulators' view....
    Lew's predecessor as chief of staff was William Daley. Daley is a lawyer. Daley was on the executive board of J.P. Morgan- Chase during the crisis and before that he was on Fannie Mae's board of directors. Daley is a member of "Third Way's" controlling board. Third Way is a Pete Peterson ally that lobbies in favor of austerity and cuts to the safety net. It pushes Wall Street's, and Pete Peterson's, greatest dream -- privatizing Social Security. Privatization would allow Wall Street to increase its profits by hundreds of billions of dollars in fees for managing our retirement savings.
    from William Black's "Jacob Lew: Another Brick in the Wall Street on the Potomac"

    Learn about MMT. Don't be the last Progressive OR Dem who doesn't know.

    Lots of stuff at New Economic Perspectives -- one good starting point referenced there  is
    Warren Mosler's Seven Deadly Innocent Frauds of Economic Policy.

    United We Understand

    by dorkenergy on Thu Jan 17, 2013 at 12:05:20 AM PST

    [ Parent ]

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