Secret and Lies of the Bailout by Matt Taibbi, Rolling Stone

In this extremely important article, Matt Taibbi, first in his blog of January 4, 2013, describes the lies, deception and corruption carried out by the collaboration of our federal government with Wall Street to cover up the real causes of the great financial collapse of 2008.  We learn in great detail the extent of these crimes, none of which have been prosecuted. We also can see why the federal and local governments tried to squash the Occupy Wall Street movement, fearing there would be a wide spread disclosure of the extent of the criminal activity.  Taibbi gives names and organizations who were directly involved.  In effect, he has done most of the investigative work which the Justice Department has ignored or hidden under Eric Holder, Attorney General.  Taibbi demonstrates why some of us have expressed concern for the erosion of our Constitutional rights under Obama in his approval of NDAA, the Patriot Act, unlawful surveillance, keeping Gitmo open, etc.  One can also suspect that this may have had something to do with the creation of a fictitious “Fiscal Cliff” to take attention away from the real causes of the financial disaster created by what should be called:  The Great Corporate Fascist Coup of the United States of America!

(This introductory comment by Thomas Baldwin)


Secret and Lies of the Bailout

The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come.

(This article is from the January 17th, 2013 issue of Rolling Stone.)

January 4, 2013 4:25 PM ET
national affairs secrets of the bailout taibbi
Illustration by Victor Juhasz

It has been four long winters since the federal government, in the hulking, shaven-skulled, Alien Nation-esque form of then-Treasury Secretary Hank Paulson, committed $700 billion in taxpayer money to rescue Wall Street from its own chicanery and greed. To listen to the bankers and their allies in Washington tell it, you’d think the bailout was the best thing to hit the American economy since the invention of the assembly line. Not only did it prevent another Great Depression, we’ve been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right?


It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences. We thought we were just letting a friend crash at the house for a few days; we ended up with a family of hillbillies who moved in forever, sleeping nine to a bed and building a meth lab on the front lawn. (Continued)

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