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I mentioned this briefly last night, but I want to highlight this short passage from Obama’s speech again:

I intend to hold these banks fully accountable for the assistance they receive, and this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer. This time, CEOs won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over.

Still, this plan will require significant resources from the federal government — and yes, probably more than we’ve already set aside. But while the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade.

The first paragraph starts us off with some excellent populist banker bashing.  You can almost feel the pitchforks and torches in the air.  But it’s just a carnival barker’s trick designed to misdirect.  In the second paragraph, delivered so quickly you could be forgiven for missing it, we get the substance: “This plan will require significant resources from the federal
government — and yes, probably more than we’ve already set aside.”

Bottom line: we intend to keep shoveling money into America’s big banks.  But we don’t really intend to get anything for it.

Here’s the best interpretation I can put on this.  Obama knows that he’s very likely going to have to nationalize one or more banks over the next few months.  But he also knows that talking about it openly is disastrous.  Like it or not, it just is.  So the only way for it to work is to deny, deny, deny right up until the day you stop denying.  Then you make a clean sweep: you take over whichever banks you need to and give the rest a firm, credible clean bill of health.  And everyone can get on with business.

Maybe this is wishful thinking on my part.  But I hope this is what’s going on.

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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