Matt Taibbi uses the current election to illustrate our completely corrupt political process

Once again, I'm a bit embarrassed that I can't think of ANYTHING to disagree with while reading an article by Matt Taibbi. Here's an excerpt:

If the clichés are true and the presidential race always comes down to which candidate the American people "wants to have a beer with," how many Americans will choose to sit at the bar with the coiffed Wall Street multimillionaire who fires your sister, unapologetically pays half your tax rate, keeps his money stashed in Cayman Islands partnerships or Swiss accounts in his wife's name, cheerfully encourages finance-industry bailouts while bashing "entitlements" like Medicare, waves a pom-pom while your kids go fight and die in hell-holes like Afghanistan and Iraq and generally speaking has never even visited the country that most of the rest of us call the United States, except to make sure that it's paying its bills to him on time? Romney is an almost perfect amalgam of all the great out-of-touch douchebags of our national cinema . . . The fact that Barack Obama needed a Himalayan mountain range of cash and some rather extreme last-minute incompetence on Romney's part to pull safely ahead in this race is what really speaks to the brokenness of this system. Bruni of the Times is right that the process scares away qualified candidates who could have given Obama a better run for all that money. But what he misses is that the brutal campaign process, with its two years of nearly constant media abuse and "gotcha" watch-dogging, serves mainly to select out any candidate who is considered anything like a threat to the corrupt political establishment – and that selection process is the only thing that has kept this race close. Barack Obama is hardly a complete Wall Street stooge. The country's most powerful bankers seem genuinely to hate his guts, mainly because they're delusional and are sincerely offended by anyone who dares to even generally criticize them for being greedy or ethically suspect, as Obama has with his occasional broadsides against "fat cat bankers" and so on. On the other hand, Obama's policy choices in the last four years have made it impossible for him to run aggressively against the corruption and greed and generally self-obsessed, almost cinematic douchiness that Romney represents.

Continue ReadingMatt Taibbi uses the current election to illustrate our completely corrupt political process

Matt Taibbi challenges the notion of “rogue traders”

Swiss bank UBS recently announced that a "rogue trader" caused the bank to lose $2 billion. At Common Dreams, Matt Taibbi argues that what this "rogue trader" was doing was par for the course on Wall Street, even since the intentional destruction of the Glass-Steagall Act. Therefore, allegations that "rogue traders" cause losses at Wall Street banks is yet another fraud on behalf of these "banks."

Investment bankers do not see it as their jobs to tend to the dreary business of making sure Ma and Pa Main Street get their $8.03 in savings account interest every month. Nothing about traditional commercial banking – historically, the dullest of businesses, taking customer deposits and making conservative investments with them in search of a percentage point of profit here and there – turns them on. . . . Nonetheless, thanks to the Gramm-Leach-Bliley Act passed in 1998 with the help of Bob Rubin, Larry Summers, Bill Clinton, Alan Greenspan, Phil Gramm and a host of other short-sighted politicians, we now have a situation where trillions in federally-insured commercial bank deposits have been wedded at the end of a shotgun to exactly such career investment bankers from places like Salomon Brothers (now part of Citi), Merrill Lynch (Bank of America), Bear Stearns (Chase), and so on. These marriages have been a disaster. The influx of i-banking types into the once-boring worlds of commercial bank accounts, home mortgages, and consumer credit has helped turn every part of the financial universe into a casino. That’s why I can’t stand the term "rogue trader," which is always tossed out there when some investment-banker asshole loses a billion dollars betting with someone else’s money. They’re not "rogue" for the simple reason that making insanely irresponsible decisions with other peoples’ money is exactly the job description of a lot of people on Wall Street. Hell, they don’t call these guys "rogue traders" when they make a billion dollars gambling.
Reckless Wall Street "banks" are mostly not-banks. They only make about 15% of their money raising capital for businesses. Instead, they are gamblers who are using what's left of their bank function as a human shield so that when their reckless bets go bad they can call out to Congress for yet another mega-wad of cash to save them from going under. You can almost hear them shouting, "Save the banks! Save the banks!" If the federal government hadn't killed Glass-Steagall, Congress would be much better situated to respond to what would have been only a reckless gambler, "Sorry, but it's time you suffered the natural consequences of your actions . . . no federal money for you." If only Glass-Steagall were still in place, those stodgy and boring bank accounts of people like you and me would be safely segregated from the uncontrolled avarice of huge gambling corporations that currently call themselves "banks."

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Matt Taibbi reports from his front row seat at a foreclosure court trial docket

Matt Taibbi's newest article should be required reading for anyone who wants to support the desires of banks to expeditiously foreclose on home loans. Taibbi showed up at a Florida foreclosure docket to give an insider's view. You will be amazed at the conduct of the judge (it is described toward the end of Taibbi's article). Here's the link: Courts Helping Banks Screw Over Homeowners: Retired judges are rushing through complex cases to speed foreclosures in Florida. Here's an excerpt:

At worst, these ordinary homeowners were stupid or uninformed — while the banks that lent them the money are guilty of committing a baldfaced crime on a grand scale. These banks robbed investors and conned homeowners, blew themselves up chasing the fraud, then begged the taxpayers to bail them out. And bail them out we did: We ponied up billions to help Wells Fargo buy Wachovia, paid Bank of America to buy Merrill Lynch, and watched as the Fed opened up special facilities to buy up the assets in defective mortgage trusts at inflated prices. And after all that effort by the state to buy back these phony assets so the thieves could all stay in business and keep their bonuses, what did the banks do? They put their foot on the foreclosure gas pedal and stepped up the effort to kick people out of their homes as fast as possible, before the world caught on to how these loans were made in the first place. . . . When you meet people who are losing their homes in this foreclosure crisis, they almost all have the same look of deep shame and anguish. Nowhere else on the planet is it such a crime to be down on your luck, even if you were put there by some of the world's richest banks, which continue to rake in record profits purely because they got a big fat handout from the government. That's why one banker CEO after another keeps going on TV to explain that despite their own deceptive loans and fraudulent paperwork, the real problem is these deadbeat homeowners who won't pay their fucking bills. And that's why most people in this country are so ready to buy that explanation. Because in America, it's far more shameful to owe money than it is to steal it.

Continue ReadingMatt Taibbi reports from his front row seat at a foreclosure court trial docket

Matt Taibbi on Congressional corruption

Once again, Matt Taibbi says it like it is.

This is a classic example of how the Senate works . . . Bernie Sanders had put forth a proposal in the Senate to put a 15 percent cap on credit-card interest. Who isn't in favor of this kind of legislation? The only difference between credit card companies and loan sharks at this point is that you can choose to not patronize a loan shark. As an adult professional in this country one has to have a credit card - it's impossible to rent a car, buy a hotel room, shop online or do countless other things without one. But all the credit card companies use the same insane formulae based on FICO scores to charge exorbitant interest rates for anyone who slips up - and they don't exactly make it easy to not slip up . . . Almost everyone has horror stories about consumer credit and my guess is that if put to a national referendum, something like the Sanders 15% cap would pass pretty easily. In Washington, of course, it's another story.
If we had a national referendum, the 15% cap would pass 90-10 if we had an honest debate. Of course, if there were really a national vote on the issue, the airwaves would be filled with bank-financed fraudulent ads telling us how the entire country will go bankrupt if we don't charge a minimum of 30% interest rates on credit cards, or some similar bullshit.

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Matt Taibbi compares the political parties

In a short Rolling Stone article called "The Way Out for Obama," Matt Taibbi compares the Democrats and the Republicans:

Democrats and Republicans are basically the same on a lot of issues: They both voted for the Iraq War, they both love pork and useless weapons programs, they both lift their skirts for Wall Street. But they have one major stylistic difference: Republicans are unafraid to exercise power, while Democrats try to run government like one of those pansy-ass T-ball leagues, where every kid gets to have a hit, nobody loses, and nobody has to go home with an ouchie or hurt feelings. Well, T-ball is over. If Obama wants to pass any kind of [health care] reform — even one as riddled with industry giveaways as the current measure — he is finally going to have to take a swing in anger. If he doesn't, it may well mark the moment when our government conceded that it can never force any powerful industry to accept any kind of change, no matter how minimal.

Continue ReadingMatt Taibbi compares the political parties