How Wall Street Can Bail Itself out without Destroying the Dollar by Thom Hartmann

by Erik Larson | September 27, 2008 at 12:28 pm

628 views | 27 Recommendations | 11 comments

Instead of a taxpayer funded bailout, Thom Hartmann suggests taxing the people who created the mess in a way that will promote investment as opposed to speculation. What do you think? Let your Representative know: votesmart.org

For Grover "Drown Government in the Bathtub" Norquist, this bailout deal will work out very well. At a proposed cost of $4,780 per taxpayer, it'll further the David Stockman strategy of so indebting us that the next president won't have the luxury of even thinking of new social spending (expanding health care, social security, education, infrastructure, etc.); taxes will even have to be raised just to pay for the bailout. It'll debase our currency, driving up commodity prices and interest rates, which will benefit the Investor Class while further impoverishing the pesky Middle Class, rendering them less prone to protest (because they're so busy working trying to pay off their debt). It'll create stagflation for at least the next half decade, which can be blamed on Democrats who currently control Congress and, should Obama be elected, be blamed on him.

But there's another way: Create an agency to fund the bailout, loan that agency the money from the Treasury, and then have that agency tax Wall Street to pay us (the Treasury) back.

It's been done before, and has several benefits.

Also see this related article by George Washington on an alternative Republican proposal:

Support the Wall Street-Funded Rescue Plan!

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Amy Judd

flagged this story as Good Stuff

at 12:59 on September 27th, 2008

Erik Larson, I like this story. It's good stuff.

I suppose this might be an idea, but it will never happen - that's the problem

Babel-Fish

flagged this story as Good Stuff

at 14:40 on September 27th, 2008

Erik Larson, I like this story. It's good stuff.

The problem is it will not solve the fact USA is in debt as with the bailout using tax payers money it will just delay the collapse of USA PLC.

This idea would see a slump on the wall street market due to the wall street tax and that will cause a very deep resession. Where as the bailout will delay the resession to a later date within the next or later adminstrations rule.

USA has a Hugh problem and president Bush of course has had his head in the sand when he took USA into two wars it could not really afford. Oil prices went up causing another problem that USA could not really afford. The debt to China is the biggest problem thats just not going to go away.

So George Bush took his head out of the sand at the end of his administration his puppet masters have made their big profits, he is all right Jack and now he thinks the tax payers have to pay. Oh of course they will in the end any way, one way or another, thats the way the cookie crumbles. USA has been living on credit and it looks like one two many credit cards.

Buy now pay later well later has arrived folks.

panzerlawyer

flagged this story as Good Stuff

at 14:54 on September 27th, 2008

Erik Larson, I agree we cannot resort to communism. Bush ruled like a big spending democrat. The dems should be happy with Bush!

djermano

flagged this story as Good Stuff

at 16:21 on September 27th, 2008

Erik Larson, I like this story. It's good stuff.

How to solve the credit crisis in 3 easy steps...

Step one: F#%$@ Wall Street. Round up the crooks, charge them with malfeasance and assign appropriate prison sentences.

Step two: If ANYbody should get $700 billion it should be the American people -- afterall, it's OUR money!

I heard John McCain say yesterday that this amount -- tantamount to a one-time 55% income tax -- equals $10,000 per American family.
Well, if a bank gives you a mortgage, and then goes out of business, why do you owe anybody anything if they no longer exist?

The people should keep their homes. Bank error, customer favor.

Step three: Since it isn't fair that some people get free houses and other people don't, divvy up that $700 billion among the rest of the taxpayers; and it surely will be a hell of a lot more than ten grand.
I could sure use a check in the mail for $10,000, couldn't you? How about we see what THAT will do for this suck ass economy:

Imagine, people might actually be able to afford the fuel that Congress has allowed Big Oil to ass rape us with!

No wonder Goldman Sachs among others are lining up for their piece of the pie.
Get your free money! Get your fresh stash of mint green cash while Americans are still stupid enough to fall for another bullshit emergency!

STOP SOCIALIZING JUNK BONDS.

If the goal is to save the economy, putting the money back into Joe Q.
Public's pocket trumps lining CEO's parachutes with gold all for ramming 100-year-old companies into their graves!

Besides, once those people only get $10-30k next to other people with free mortgages, I believe the pressure will be sufficient upon the Congress by the people to FINALLY regulate these criminals and kick the lobbyists out of their offices once and for all.

Rev.

dwainj

flagged this story as Good Stuff

at 17:02 on September 27th, 2008

I think they are trying to get this into the bill. The Republicans are holding it up for the accountability you've posted - the Democrats are trying to stuff more things into it.

Hope it gets resolved this weekend.

Heritage

flagged this story as Good Stuff

at 19:11 on September 27th, 2008

Erik Larson, I like this story. It's good stuff.

Erik Larson

at 19:48 on September 27th, 2008

thanks everyone, this 5 minute statement by Rep. Marcy Kaptur is really good, too.

A LOT of people are pissed off about this, and are letting Congress know; the People's outrage stopped the Dubai port security deal, maybe it can stop this scandal too. There are plenty of alternatives, and if these companies that are too big to fail can't survive in the free market without govt. handouts, they're too big to exist. Fundamental reform is in order, and the economic system needs to be structured so it benefits the people, not the corrupt private interests that created this mess. It's time to nationalize or abolish the Federal Reserve.

Call Congress votesmart.org

Great photos, thanks to everyone who uploaded, i didn't know street protests were happening!

uvw916a

at 19:54 on September 27th, 2008

This so-called bailout represents the single largest transfer of cash from the pockets of the middle class to wealthy corporations in the history of America. What a farce!