A Financial Patriot Act

Twice in the George W. Bush era a catastrophe has had its epicenter on Wall Street. We know all about the first, the terrorist attacks on September 11, 2001. The second, the financial "storm" engulfing our corrupt banking and financial system, will now play itself out over the weeks and months to come. Already it has claimed hundreds of billions of dollars of the public trust, and the end may be nowhere in sight. The circumstances surrounding these two events, ironically, have much in common.

With it's head in the sand, ignoring ample warnings suggesting that strikes inside the US were likely being organized--recall the title of that Presidential Daily Briefing, "Bin Laden Determined To Strike in US"--the Bush administration sleep-walked while the 9/11 attacks were being prepared and executed. The political results of that negligence we know all too well, expanded government powers; legislation gravely treading upon Constitutional liberties; a disastrous change in US foreign policy; torture, extraordinary rendition and Guantanamo Bay (to name but a few). Bad legislation was pushed through Congress and equally bad policies were foisted on an America kept fearful and ignorant by administration propaganda and deception. In a state of fear Congress rushed through the Orwellian-named "Patriot Act," provisions of which any true patriot would find unconscionable. Let us recap this sad tale. Those who were negligent, and by their negligence at least partially responsible, were left ultimately unaccountable, moreover, they were left in power, unchecked and with free reign to manage the aftermath of 9/11, to the disastrous ends we all now must live with.

Now, the American people, seemingly without a memory, are allowing a replay of this scenario to unfold, perhaps to equally disastrous ends. After eight years of corruption, deregulation, dismantling of any oversight and enforcement regime, and cheer-leading for corporate greed and excess, the same administration that napped while terrorists plotted, has been comatose while a largely foreseeable financial meltdown that may ultimately match or exceed the Great Depression, has been allowed to happen. And now, with the crisis at its apparent zenith, with fear and the professed need to act at near fever pitch, drastic solutions are being discussed by the administration and the Democrat-controlled Congress. Indeed, the first details of Treasury Secretary Paulson's proposed bail-out legislation has been made public this weekend, and from the looks of it has every indication of being a financial version of the Patriot Act. The remarkably terse text of the bill, essentially grants Paulson and the administration, a rolling $700 Billion slush fund with which to buy up the bad mortgage-related debts of ANY financial institution based in the US. How's that for broadly defined? Although it might seem that the $700 Billion is a cap, the text indicates that this is the amount that can be outstanding AT ANY GIVEN TIME. Thus, the total sum which American taxpayers could be on the hook for could be significantly more, say, several Trillion dollars! Now that's some serious coin! However, the most sinister and outrageous clause in the text is the following;

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

Yes, you might want to read that again. Decisions made by the Secretary regarding this Act would be NON-REVIEWABLE, by ANY agency, court or entity. This would be Congressionally mandated and approved fascism, nothing less. It would grant virtually unlimited financial power to the agents of the President without any accountability! Moreover, it would grant this authority to those who, Nero-like sat back, watched and indeed, precipitated the crisis with their disregard of their regulatory functions and pro-Wall Street legislation. But it would do even more than that, it would privatize the ill-gotten profits of these corporate criminals, while socializing all of the risk, on the backs of our kids, perhaps for decades to come. This is beyond outrageous. As Glenn Greenwald and others have pointed out, this should arguably be something of a "pitch-fork" moment, something that might actually get people out into the streets protesting, that is, if protests were still allowed. This must not be allowed to happen. Every thinking, responsible American needs to get on the phone and contact their representatives in Congress to oppose this monstrous draft bill.

While it may be true that some form of Government-sponsored bail-out is needed to stabilize the economy, all Americans should insist that it meet several conditions;

1. It must not reward the perpetrators of this catastrophe. That is, the Wall Street fat-cats who gambled with the public's money, lost, and now wish to be repaid!
   
2. It must be largely financed by those who sought to profit and brought about the conditions that precipitated the crisis. It must not be financed on the backs of the middle class and lower income Americans. This point has recently been emphasized by Independent Senator Bernie Sanders. Taxes should be raised on corporations and the wealthy, at a minimum.
   
3. Any deal must be conditional on major changes to the current administration. At a minimum, those economic "stewards," the Treasury Secretary (Paulson) and Federal Reserve Chairman (Bernanke) who were so demonstrably wrong must resign. However, a more reasonable requirement for Democratic approval of some bail-out would be resignation of the President and Vice President.
4. It must be accompanied by a return to close regulation and policing of the banking and finance industries, indeed, of all corporations. There can be no return to "business as usual." A new commitment to a corporate culture that benefits society must be enforced.
   
5. Those responsible for the debacle must not be allowed to manage the aftermath, and must be held accountable for their negligence and malfeasance.
   

If the Democratic controlled Congress cannot insist on these conditions, then it will have shown itself to be in the thrall of the same corporate pay-masters that run the Republican Party. If that is the case then voters should vote the whole sorry lot out of office.