On Obama's Sellout

This is pernicious for a lot of journalistic reasons, but politically it's bad for progressives beacuse conspiracy theories stand in the way of good policy analysis and good activism, replacing them with apathy and fear.

via TAPPED Archive | The American Prospect.
Rolling Stone

American Prospect

Rolling Stone



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Prospect
"Neither did Karen Kornbluh, who had served as Obama's policy director and was instrumental in crafting the Democratic Party's platform." The reasons why Kornbluh didn't get a job remain unclear, but she lost her influence earlier in the year while Obama campaign and she remained in Washington as his Senate Office policy director and later at the DNC, where she played an important role by crafting the 2008 Democratic platform. She has recently been nominated as U.S. Ambassador to the Organization for Economic Co-Operation and Development.


His connection to Obama is through their time together on the Harvard Law Review, not through Rubin. He did indeed once work for Rubin, and was a member of Obama's transition advisory board; he was not on the transition staff.


"Rubin was the man Barack Obama chose to build his White House around." Or maybe he merely built his White House around economic policy experts who had been mid-level officials in the previous Democratic administration? To my knowledge, Rubin has not been involved with policymaking efforts.










"Neil Barofsky, the inspector general charged with overseeing TARP, estimates that the total cost of the Wall Street bailouts could eventually reach $23.7 trillion." It could, if every single loan guaranteed by the Federal government failed at once and all of the assets bought with those loans were destroyed - and many of those loans are to homeowners, including low-income homeowners, through Fannie Mae and Freddie Mac, or to small businesses. Some of that money went to Chrysler and GM in what was primarily a job saving move. TARP's actual outlays are only $518 billion (still nothing to sneeze at), including foreclosure relief for homeowners. More money has been actually allocated so far on fiscal stimulus, including funds to reinforce the social safety net, than on the bank bailouts.
Prospect

$14 trillion







"It's the sweetheart deal of the century, putting generations of working-stiff taxpayers on the hook to pay off Bob Rubin's fuck-up-rich tenure at Citi." Actually, the U.S. structural deficit and resultant national debt is mainly a hangover from the Bush Administration, with economic remedies to the financial crisis and the recession making a relatively small piece of the pie. Obama will be rolling back most of Bush's tax cuts for the wealthy, but Taibbi deigns not to mention that.


"Even more outrageous, it specifically prohibited Congress from rejecting tax giveaways to Wall Street, as it did last year, by removing all congressional oversight of future bailouts." The legislation actually only allows federal regulators to use funds taxed from banks to assist them in a crisis; if they want to use taxpayer money, Congress can say no.












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