Rep. Marcy Kaptur

[youtube=http://www.youtube.com/watch?v=S27yitK32ds]

One Comment

  1. Posted October 1, 2008 at 9:21 am | Permalink

    while I feel her outrage and understand where she is coming from, what this says really is that the size, scope and nature of the issue has not been effectively communicated to the public. Part of that is that information would be extremely alarmist, and might cause further meltdown itself.

    She talks about returning money “stolen” but the fact is most of that money was really “moniness” and since the declines in the stock market and collapse of the investment banks, that money doesn’t exist any more-in the same way that the value of homes in the US has declined 20% over the past year. Yet the mortgages for the purchase price remain. What has been lost is the “capital” that filled the bubble, you could argue it never existed, but the problem is a lot of other capital was predicated on the existence of that bubble capital. We all feasted on this, whether it be mortgages for houses we couldn’t afford, credit card debt, easy car loans, etc. There is no part of this that is Wall St. only. While they certainly made huge profits from it, and paid bonuses to match, financial services are not the only engine in the economy, there is health care, tech, military spending, infrastructure, etc. But if banks won’t lend to each other, all of that grinds to a halt too.
    Wall St. will not be “bailed out” by this package, that is a misnomer, basically it is an attempt to soften the landing of deleveraging, and while it will have some effect at shortening the length of the ensuing recession, economic activity in this country and worldwide is going to take a severe hit regardless, and your copia pictures of thrift stores are going to look like mailorder catalogues of what is now affordable…

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