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David Sirota
David Sirota
26 Sep 2014
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We Told You So

Comment

Please, forgive me for saying it. I know it's a tad annoying, but it has to be said to America's ruling class in this humble column space. Because if it's not said here you can bet it won't be said anywhere else in the media, and it needs to be said somewhere on behalf of the millions of citizens who were right.

We told you so.

In the slow-motion train wreck that became the current economic meltdown, our bipartisan political Establishment and the sycophantic punditburo have been wrong over and over and over again. They told us that eviscerating consumer protections would unleash the market's benevolent power and boost the economy. They told us that a trillion-dollar Wall Street bailout would solve a credit crisis. They told us that bailout would be subjected to intense oversight and scrutiny.

Wrong, wrong and wrong — and when critics predicted just that, sneering commentators and congressional leaders berated us as know-nothing Luddites, conspiracy theorists, or both.

But with the release of three new reports, there's no debate anymore about who was correct and who wasn't. The studies prove that the critics were right and the ideologues of Washington were wrong.

When in 2005 Congress overwhelmingly passed a credit card industry-written bill gutting bankruptcy laws, progressives were right to try to stop it — and not just because it was an immoral move to legalize usury. We were right because as the New York Federal Reserve Bank reports, the bill played an integral role in the recent foreclosure surge that crushed the economy.

In the past, bankruptcy laws made sure debtors first and foremost continued paying their mortgages so that they could stay in their home. But the 2005 legislation effectively compels debtors to first pay off their credit cards, meaning many then have no money left to pay their mortgage. The Fed's report estimates that the bankruptcy bill is causing 32,000 more foreclosures per quarter than the economy would have already generated.

We told you so.

When almost every media voice in America was sounding the alarm of financial panic and demanding a Wall Street bailout plan; when bailout opponents were roundly ridiculed as "irresponsible" by politician and pundit alike — those opponents were nonetheless right to say then what a study from the Minneapolis Federal Reserve Bank says now: that the case hadn't been made.

While reporters and the Bush administration frantically insisted that bank-to-business lending had ceased, inter-bank lending had stopped, and short-term "commercial paper" loans had dried up, the Minneapolis researchers tell us that "all three claims were false" and continue to be false; that "nobody has explained how the money system has frozen when the data says it has not"; and that "a trillion dollar intervention warrant(ed) a bit more serious analysis."

We told you so.

When lawmakers said the bailout included strict oversight measures, skeptics were right to say that claim was patently untrue.

According to a new analysis by federal officials at the Government Accountability Office, virtually nonexistent oversight of the bailout means "taxpayers may not be adequately protected" and that the bailout's stated goal of fixing the economy "may not be achieved in an efficient and effective manner."

Yes, we told you so.

And so now, even though these damning reports have garnered scant news coverage, perhaps there will be a change. As we — the pragmatic progressive majority – demand tough new financial regulations; job-creating investments in public infrastructure; labor law reforms; universal health care; revised international trade policies; a repeal of the odious bankruptcy bill and an end to Wall Street welfare – maybe, just maybe, our humiliated rulers will start listening.

David Sirota is the bestselling author of the books “Hostile Takeover” (2006) and “The Uprising” (2008). He is a fellow at the Campaign for America's Future and a board member of the Progressive States Network — both nonpartisan organizations. E-mail him at ds@davidsirota.com.

COPYRIGHT 2008 CREATORS SYNDICATE, INC.



Comments

1 Comments | Post Comment
The media tells us that unemployment is about 8 percent

Eight percent of 200 million is 16 million.

The whisper number that includes the people not counted or those that have given up is about 13 percent

Thirteen percent of 200 million is 23 million.

I think that unemployment is about 20 percent.

Twenty percent of 200 million is 40 million.

Now lets put that into dollars and how it affects America and how it Affects our retailers, manufacturers and raw material producers

Using an average salary of 50,000 dollars

16 million people out of work would take 800 BILLION out of the economy, of which 240 BILLION would be taken from your town, your county, your state and your countrys budget and 560 BILLION would be taken from our retailers, manufacturers and raw material producers

23 million people out of work would take 1 TRILLION 150 BILLION out of the economy, of which 345 BILLION would be taken from your town, your county, your state and your countries budget and 805 BILLION would be taken from our retailers, manufacturers and raw material producers.

40 million people out of work would take 2 TRILLION out of the economy, of which 600 BILLION would be taken from your town, your county, your state and your countries budget and 1 TRILLION 400 BILLION would be taken from our retailers, manufacturers and raw material producers.

Now do you see why GM is having a tough time making ends meet ?

And no amount of bailouts are going to solve the problem.

It will take jobs.

It will take our political and corporate leaders waking up and realizing that their insistence on sending our jobs overseas is destroying the whole world's economy.

Why the whole World's economy ?

Because American consumers are the biggest spenders in the World and they want things and as long as they have money, they will buy these things.

A lot of them are made in other countries.

So when the American consumer has to stop buying because they no longer make what they used too, the trickle down effect, affects the whole World.

Right now, our experts and our political and corporate leaders are in denial.

They say that what is good for them is good for America.

We need to work together to get them to see what they are doing to America and the rest of the World.

If we can't do that, we need to use our vote and get somebody in there that will put their town, county, state and country first.

Comment: #1
Posted by: Virgil Bierschwale
Fri Dec 12, 2008 5:22 AM
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