Support indie blogging--and keep it ad-free--by purchasing a G.M. book, below right.

Friday, January 4, 2013

Taibbi: From Bailout to Ponzi, One Big Lie

New Matt Taibbi piece at Rolling Stone just up, and in a tweet he promises more background materials to come.   It's basically on how the bailout produced a permanent "Ponzi" culture.
It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it.
The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn.

1 comment:

Anonymous said...

once again am mystified why it's been left to Rolling Stone to report this stuff. Where's the rest of the financial press?