Doug Cupertino | 19.09.2008 05:25
The so-called rescue plan involves two steps. One has already begun with U.S. Treasury Secretary Henry Paulsen and Fed Chair Bernanke cooking up a scheme to pump over $400 billion into Wall Street banks and lenders.
This plan is fraught with fraud. It is based on the premise that the problem of speculative bubbles are corrected by inflating the bubble even more. Wall Street is just like a overstretched balloon not built to take more air and already breaking at the seams. What the U.S. government is now being made to do is puff up the cracking balloon even more. This is based on the long-time neoliberal lie spread by Wall Street, that its Wall Street capitalism is healthy (remember, the fundamentals are strong) and doesn’t need government at all to keep healthy. Now that lie is being shown up for it is. Now the taxpayers must bail out Wall Street capitalism. Worse, Wall Street and its corporate media and government backers are in complete denial about the real problem, Wall Street itself and Wall Street capitalism.
Wall Street is built on the addiction to, and greed and gluttony for speculative profits. Wall Street is like a cocaine junkie. What the Wall Street is having the U.S. government do is digging into the working people’s tax money, pension funds and productivity and plow into the Wall Street speculative machine. The Paulsen-Bernanke package is like drilling and pumping more cocaine into a junkie already reeling and sapped by his addiction. What Paulsen and Bernanke are pushing for is more of the same. More of the same problem. More blowing up of the speculative balloon and addiction, with more tax payer money. Yes, very, very short-term relief. But it means, priming up the addiction for a bigger crash.
So, the first plan is PUMP IN MORE OF THE SAME SPECULATIVE JUNK.
Now the second part of the plan is TRAP THE SPECULATIVE JUNK AND KEEP IT FROM SEEPING OUT.
Part two of the Wall Street Paulsen-Bernanke is trap the speculative money in Wall Street with two measures.
The first is the policy of stopping short-selling financial stocks. That is, no speculative calls or bets that predict fall in share prices of Wall Street banks and insurance companies. This is sheer fraud. Wall Street and its business media fooled the people into buying into a bubble. Drill, drill and drill. Buy, buy and buy shares, because share prices will go Up, Up and Up. They tricked the people into thinking Wall Street speculation meant that speculative investment would bring only rising share prices and only profits, not losses. They put the people in denial that Wall Street share prices follow the law of gravity, what goes up can and sooner or later tends to go down.
Now Wall Street is pushing this lie to a higher absurd level. Now they make it a law in New York that Wall Street investors and speculators can only bet in one direction. And the US government in New York now colludes with Wall Street in threatening those who “short-sell”. Now they lull the people with the lie that Wall Street is okay, because it’s against the law to bet for share prices of Wall Street banks will fall. So Wall Street will not fall, the lie goes, so keep the investment and money pouring in.
This is all a lie, because Wall Street speculation with its trillion of computerized derivatives is ONE BIG MAZE AND MESS. In fact, the Fed does not have a clue about the entire, total big bad debt plaguing the financial system, involving trillions of dollars in transactions of derivatives each day. It only sees the tip of the iceberg. How can it block and check each financial transaction and prevent short-selling? What a big farce!
Wall Street manipulated the public with hype and sheer denial to bloat itself up. Now it says it will openly manipulate the investors to block its sliding down. This itself is another manipulation of the people’s minds to keep their investment, pension and tax money trapped in Wall Street.
And here’s another fraud. Wall Street and the Wall Street-driven government is dishing out the lie: Don’t worry, we will package the bad debt in a new Wall-Street-driven government agency that will sort out all the bad debt, and save the investors!
It is now fooling the people with this new lie that it can pick out the needles of bad debt in massive haystack of the financial crisis and mess!
This way, it wants to trap the people’s money in its speculative bubble, while puffing it up even more, and then manipulating it for more speculative big-time profits for the big bankers and speculators. This strategy of saving Wall Street will blow up in the people’s face. By saving itself, it is only priming its speculative machine into a massive big crash that will harm the poor and the middle-class the most. In that big massive crash, it is the Wall Street bankers and speculators who will profit most from the fall, and leave the working-people and their Wall Street investments in the lurch, just like what happened with Enron!
What is needed is real, socialist change. Put the working people’s pension, savings, tax and productivity money where it belongs, in public health-care, education, housing, civilian research, renewable energy, community programs and projects rather than in grand corporate gambling and profiteering.
Time to fight and beat down Wall Street capitalism and the fraud with which it has fooled the working people for so long! Time for Socialist Street! Time for real, socialist change!