By Dave Lindorff

Critics of government get all worked up when Washington spends money
stupidly, or does something manifestly stupid. There was a even senator
from Wisconsin, William Proxmire, who used to hand out "Golden Fleece"
awards for such things.

The Pentagon's notorious $600 payments for toilet seats that were
$12 in local discount stores, or $434 paments for hammers that were $10
in the local hardware store were good examples of this.

But nobody seems to be screaming about the incredibly wasteful
rescue of AIG, on which the government has spent first $85 billion and
now another $37.5 billion.

By Dave Lindorff

I’ve been getting some emails that refer to Barack Obama as a
“Manchurian Candidate,” a guy who is somehow hiding a secret radical
and/or Muslim jihadist agenda that will burst forth if he’s elected
president. There is a certain idiot factor at work here, since if Obama
were a closet Weatherman, who somehow learned of and adopted that 1960s
college dropout organzation’s creed at the tender age of 8, it would
have clashed badly with any Muslim teaching he might have picked up as
a student in an Indonesian public school at the same time (he attended
an Indonesian public schoolfrom the age of 6 to 8 before transferring
to a Catholic-run institution).

But since some low-wattage and conspiracy-minded people seem ready
to believe this kind of stuff, let’s consider John McCain’s early
background, and the possibility of his being a Manchurian Candidate
too. Fair’s fair, right?

By Dave Lindorff

Both Joe Biden and Sarah Palin tried to claim Thursday evening that
their presidential-candidate runniing mates, Barack Obama and John
McCain had been prescient about spotting the looming financial disaster
facing the US--Biden saying Obama had warned Treasury Secretary Hank
Paulson and Fed Chairman Ben Bernanke several years ago that subprime
mortgages would become a serious problem, and Palin saying McCain had
called for reform of mortgage backing firms Fannie Mae and Freddie Mac
(he actually simply co-sponsored reform legislation by Sen. Chuck
Hagel).

But there is someone who called this crisis much earlier, explaining it in astonishing clarity. Here's what he wrote:

By Dave Lindorff

The US Senate did what the Founding Fathers expected it to do when
they devised the idea of an upper house of Congress. Playing the role
of Britain’s House of Lords to the House’s House of Commons, it ignored
the rabble (that’s us, the voters) and voted the opposite way of the
House of Representatives, which on Monday had voted down the Bush
Administration’s proposed $700-billion to $1-trillion give-away to Wall
Street financial companies.

The Senate vote in support of the measure, which went 74-25 (the
ailing Sen. Ted Kennedy missed the vote), reflects the fact that, first
of all, Senators, who run representing entire states, are very
difficult to unseat because of the huge cost of mounting a media
campaign against an incumbent, and second that two-thirds of them even
don’t face voters this November, (and one third not for another four
years).

By Dave Lindorff

With the Bush Administration, the two leading presidential
candidates, and the Congressional leadership, as well as a phalanx of
Wall Street lobbyists all pushing hard for a massive transfer of
taxpayer money to the coffers of banks and investment banks, the
American people need to demand a halt to this bums' rush to a bailout.

By Dave Lindorff

The most entertaining thing about this Wall Street crisis and the
refusal of the House of Representatives (not failure but refusal) to
pass a bailout bill negotiated by the Bush White House and the House
leadership is how shocked and upset those leaders and the pundit class
have been by the idea that members of Congress would actually heed the
wishes of their constituents!

The Founding Fathers always saw the lower house of Congress as
voice of the people—the elected body that, because its members had to
face the voters every two years, would be most responsive to public
sentiment.

By Dave Lindorff

It is going to be entertaining, to say the least, to watch John McCain and Barack Obama, both of whom endorsed the crooked, stacked rip-off bailout bill being scaremongered into law by the Bush Administration.

Now that it is clear that the American public overwhelmingly
recognizes this bill as a corrupt attempt to rob them and reward the
crooks and shysters on Wall Street, how will McCain and Obama weasel
out of their endorsement of the proposal?

They can certainly count their lucky stars that the vote was in the
House and not in the Senate, where they would have already had to take
a public stand up or down on the measure, but let's be clear--both men
have said they suppport the negotiated proposal that was put to the
House today, and which went down to a stinging defeat, 228-205, despite
the solid support of the House Democratic leadership.

By Dave Lindorff

The Congressional switchboard is jammed. You can get through, but it
takes a dedicated finger on the redial button of your phone. Operators
at the Capitol say it's been that way for a week now, as Americans
across the country have been flooding their Congressional delegations
with phone calls (and emails) urging them to vote "No" on the
Bush/Paulson Wall Street bailout.

That today is no exception, after Democratic Party leaders (and both
major party presidential candidates, John McCain and Barack Obama)
bought into the plan after adding some window-dressing measures
designed to make it look more palatable. This shows that the public is
not fooled.

By Dave Lindorff

Hold everything!

Talk about déjà vu. Remember when Bush and his cabinet officers were
running all over in late 2002 crying wolf about Iraq’s supposed nukes,
and threatening that inaction on a war resolution by the Congress would
leave them to blame when the “mushroom cloud” appeared over some
American city?

Well, now they’re doing it again, this time claiming that economic
Armageddon faces the US and even the global economy if Congress doesn’t
hand over all power over the economy to the Secretary of the Treasury
in absolute contravention of the most fundamental principle of the
Constitution, which establishes that the budget be in the control of
Congress. These guys are saying if Congress doesn’t vote to hand over
$700 billion or more of taxpayer money to the Treasury to dole out to
fat cat bankers, the resulting economic collapse will be on their heads.

By Dave Lindorff

The people who pose as journalists in today’s corporate media are
in awe and in love with the rich. How else to explain their fatuous
praise for the likes of Warren Buffett, who on one hand bets $5 billion
on Goldman Sachs shares, and on the other, posing as a disinterested
wise man and patriot, publicly advises Congress to go along with
Treasury Secretary Hank Paulson’s and Fed Chairman Ben Bernanke’s
$700-$1-trillion bailout of Goldman and the rest of Wall Street?

Buffett, whatever else he is, is no fool. He looks at Goldman
Sachs, its shares knocked for a loop by the current crisis, but about
to become a merged entity—bank and investment bank combined—with
government backing to unload its bad credit risks—and he buys $5
billion worth of it, and then turns around and tells Congress to step
up and vote for a bailout which would double his money almost instantly.

What a guy! A true hero.

By Dave Lindorff

What nobody in the corporate media is mentioning amid all the
blather about the $700-billion Paulson bailout proposal is the impact
it will have on the US dollar.

We are told that this huge gift to the financial sector—the
assumption, at top dollar, of all the bad debt they’ve piled up--will
be at taxpayer expense, but that’s only the half of it. (Really only
the quarter of it because since the US government is technically
bankrupt already, spending more than it takes in each year, all that
money will be borrowed, and will be added to the national debt, meaning
that just as the real cost of the $500-billion Iraq War is closer to $2
trillion, the real cost of the $700 billion bailout will be more like
$1.5-2.5 trillion.)

by Dave Lindorff

When the financial markets started coming undone earlier this week,
the Treasury Secretary and the Federal Reserve stepped in, and with $85
billion of our money (actually our children's money,
since they borrowed it from China and Saudi Arabia), bought foundering
AIG, the world's largest insurance company, and assumed its colossal
pile of crap debt.

That didn't help, and the stock market crashed further, falling to
levels not seen in three years. Banks, meanwhile, stopped lending,
figuring to just hold onto their money and try to weather the crash.
The US Treasury and the Fed stepped in again, this time pumping nearly
$300 billion more of our money into foreign money markets, and getting
European and other governments to do the same in an effort to get the
credit markets open again and to stop the stock market swoon. That was
on top of some $700 billion already spent on bailouts.

By Dave Lindorff

With the government now having spent over $800 billion in less than
a year shoring up tottering financial companies that had become little
more than casinos (and rigged ones at that), America is looking
increasingly like China, a country where the state has been gradually
getting out of the business of directly owning companies.

At this point, with the US government owning 80 percent of the
world’s largest insurance company, AIG, and essentially owning mortgage
firms Freddie Mac and Fannie Mae as well as bankrupt Lehman Brothers,
and with the nation’s two largest automakers in line asking for $25
billion in government loans, one would be hard-pressed to spot the
difference between the two systems.

By Dave Lindorff

AIG, the quintessential blue-chip, one of the 30 companies that
compose the Dow Jones Industrial Average, a company that in 2000
boasted a market capitalization of $217 billion, making it the largest
financial institution in the world, is teetering on the brink of
collapse. Worth just $7 billion today, the future of what was until
recently the world’s largest insurance company is hanging by a
thread—that thread being the willingness of Wall Street institutions
like Goldman Sachs and Morgan Stanley, themselves facing credit issues,
to come up with $75 billion in rescue loans.

It used to be that investors who were worried about financial
markets, or who didn’t like to take big risks, would put their money in
what were called “blue chips”—companies that were deemed conservative,
safe investments that could weather any storm. They had names like
AT&T, General Motors, Ford, Boeing…and AIG.

By Dave Lindorff

That deafening silence you hear coming from the McCain campaign is
straight-talkin’ John touting his plan for privatizing Social
Security...not.

With Wall Street banks falling like dominoes, a hundred billion dollars vanishing overnight, and the Treasury
Department scampering about trying to prop up failing enterprises
from Bear Stearns to Fannie Mae, and with domestic and global equity
and bond markets swooning, Americans are afraid to open those envelopes
that come every quarter telling them the value of their hard-earned
401(k) retirement plans.

No wonder John McCain isn’t touting privatizaton these days.