Download | Play 
Download | Play (h/t Heather)
Lou Dobbs looks at how the Fed’s stimulus plan ignores the larger deficits we face and is a little too little and a little too late.
The stimulus package that Ben Bernanke the Fed Chairman said that we should be buying those domestically-produced products, we’re in a world of hurt even in that area.
Well, exactly. Then Dobbs speaks to Robert Kuttner and Jeremy Siegel on exactly what that means to the middle class.
Download | Play Download | Play
KUTTNER: The problem is, (the 3/4 point drop) won’t fix what’s broken. You’ve got all of these structural problems with bank balance sheets because the bank sponsored this orgy of speculative spending. And they’ve lost tens of billions of dollars. You know a balance sheet is a balance sheet. The idea that Citigroup can have something that’s off balance sheet. If you and I apply for a loan and we say to the creditor, well, some of my stuff is off balance sheets, I didn’t tell you that, we’d go to hail. This smack of Enron and the damage of all this stuff is going to cascade on the rest of the economy.
DOBBS: Robert Kuttner is referring to the collateralized debt obligations, more securitized debt, the misapplication of which Professor Siegel we have seen the ramifications for just about 30 years in this country. Why in the world aren’t the regulators in this marketplace, why aren’t they regulating these institutions? And why in the world is this government, in both political parties, permitting this kind of unadulterated, unfettered capitalism to rape this country?
SPIEGEL: Well, certainly we had too much lending, mostly against housing. And a case can be made, that Greenspan sat back without saying anything, saying, oh, the markets will take care of it. The world markets will take care of it and ignoring it. And there can be a case made on that.
DOBBS: Where are the free marketeers now? Where are those faith-based economists who said let Mr. Market smile and everything will be fine?
KUTTNER: Well, they look like damn fools, as they ought to. And we’ve some had foxes in chicken coops for third years often under republicans and sometimes democrats. We’ve had regulators who didn’t believe in protecting the consumer.
No Trackbacks To “Lou Dobbs: The War On The Middle Class“
If I get that 800 dollar refund it’s just going to bills for all the other things I need to buy that I can’t otherwise afford. Every one else I know is in the same situation. It’s not going to make my buy more of anything.
Then Dobbs called for a 700-mile wall to keep out those who would misapply securitized debt.
Please proof read before posting.
thx…
well….. at least it’s not immigration!
this topic IS lou’s greatest strength. he should stick to it.
Yeah. but it’s now even MORE critical we don’t change the
tax code, so those hedge fund managers can STILL pay
only 15% income tax…..
After all, they did SUCH a great job trading in all those mortgage
futures after Bush gutted the oversight agencies….
Right, Chuck Shumer? Right, Hillary Clinton?
Tax fairness, my backside….
jeaton @ 3:
You mean proofread.
We’ve had regulators who didn’t believe in protecting the consumer.
That about sums up the Conservative approach to government. Government is bad and works best when it doesn’t work.
“Why in the world aren’t the regulators in this marketplace, why aren’t they regulating these institutions? And why in the world is this government, in both political parties, permitting this kind of unadulterated, unfettered capitalism to rape this country?” - This is the true legacy of Ronald Reagan.
Bruce @ 7:
As long as they believe in the saviour, that’s what counts.
Why do they call them “adjustable rate mortgages?” Do they ever get adjusted down? I don’t think so… They should be called “escalating rate mortgages.”
I hope people realize that any sort of bail-out for the people with high interest ARM’s is actually going to benefit banks more than those individual home owners. If the banks don’t want to hold onto a lot of empty houses, they need to adjust the interest rates on those “adjustable rate mortgages” down instead of up.
I thought Greenspan did say something. Didn’t he say those ARMs are just peachy?
Isn’t anyone going to mention corporate welfare?
queue: pablo OMG OMG OMG, what are we gonna do, OMG
They will bleed us dry as long as they are given a chance.
People pick on Lou Dobbs because of his immigration stance. He may have overstated a few things, but I really don’t think he’s racist. And I do believe he supports the middle class.
He’s really not such a bad guy.
Tony @ 1:
I’ll gladly contribute to the impending recession. Other than food and basic necessities, I don’t buy anything I absolutely don’t need. I love to read but I only read books I can check out at the library. If I want to listen to my favorite music, I just stream it over Internet radio or find it on youtube. And laugh if you want, but I buy most of my clothes at second hand places for cheap. The money I save goes into my nest egg and retirement funds. I will not use my $800 to help stimulate the economy by buying crap I don’t need. Besides, can’t we better use that $800 to fight the “war on terror” George??? Why not give it to the troops over there? Oh, that’s right, you could give a rat’s ass about them.
.
WHAT TREE DO CONGRESS THINK MONEY GROWS ON?
Their war and occupation is funded… HOW?
This fluffing up of the economy is being funded… HOW?
Well, we know SCHIP’s elimination helps the funding… RIGHT?
But who else does that help?
Just one of several examples of misplaced priorities.
.
WashStateBlue @ 5:
Yeah, that’s right, it’s all Shumer and Clinton’s fault … sheesh.
Tony @ 1:
Oh, and that $800? Don’t forget you’re going to have to report that as income on next years 1040.
Dobbs:
Greed is God, and Friedman is his prophet?
gene214 @ 17:
They’re not working it the same way they did last time? Just being a loan against your next year’s refund, if you get a refund.
I actually hope we have a recession, but I don’t think we are going to have one.
The proper term for the upcoming economic downturn is “global depression.”
Some of the elderly alive today are certainly going to be saying a great big “I TOLD YOU SO!”
Funny how these guys come out of the woodwork to decry the lack of oversight after things turn to sh*t.
This is a dishonest report from Lou Dobbs. Does not mention that trade deficit has fallen from 7 to 5.5% in th past year. Still shameful but quite a turn around. This is also in the face of skyrocketing oil which accounts for a good deal of imports. This is agenda driven reporting to fit their point of view.
‘free market’ & Big Foot….have a lot in common
Can one of the free marketists out there point to one single country in the history of the world….that has been run sucessfully using that idealogy to govern its people?
And you’re automatically disqualified if you say “the United States”…its not a ‘free market’ as long as taxes pay the courts & regulatory agencies of ‘business’ to protect the people
I’m shocked I tell you, simply shocked that the Regressive mantra that the “free market will take care of it” isn’t panning out so well.
Joementum @ 21:
Or is it as simple as nobody wanting to listen to them when times were good?
The financial system needs a global sheriff.
http://www.economicsbriefing.c.....risis.html
Speaking of ENRON…. and the Supreme Court
Last week the Supreme Court ruled 01/15/08 against investors who sue
businesses that help manipulate stock prices of publicly traded companies.
http://news.yahoo.com/s/ap/200.....ties_fraud
THEN JUST TODAY…
Supreme Court refuses Enron shareholders case
http://jurist.law.pitt.edu/pap.....-enron.php
–> What a Court.
Speaking of other wars….
Today Bush postponed an event on promoting an ad campaign aimed at preventing drug abuse.
I wonder how the War on Drugs is going?
Maybe the Supreme Court can help…
Whatever happened to the investigation into a Sept 2007 report that
a Plane that crashed in the Yucatan was carrying 3.3 tons of cocaine?
What have CIA rendition aircrafts been up to lately?
Whatever happened to the Iran-contra-era drug running networks?
Whatever happened to Porter Goss?
What the Hell is going on to our Country?
Try this THE IRAQ RECESSION
I can assure these talking heads are well protected from the pain most Americans are going to have to deal with.
I probably shouldn’t reply without watching the clip but I can’t bring myself to watch Lou Dobbs. The last time I tried, I thought he was obviously sauced…Anyway, what, exactly is $800 supposed to solve? This is an economic stimulus? Is that what they’re planning on upping a tankful of gasoline to? Bullshit. Economic Pollution. The problems are clearly stated here, and nobody is going to touch them with a ten-foot pole. You can elect anybody you want for Ventriloquist-In-Chief and not a thing can or will change because “they” are all too entrenched in an irretrievably corrupt system.
Blue Lensman @ 26:
Exactly, no one wants to hear bad news until after the disaster occurs.
I believe Dobbs had said that none of the candidates are addressing the financial crisis affecting the middle class? I think the only one who has consistently sided with the peeps has been John Edwards. The major problem with our country is that we have allowed, and our govt., to outsource our work, services, goods, etc., to the rest of the world, and that descent into unfettered greed HAS allowed our country to be raped and pillaged by the very powerful and rich in this country. If it continues to slide downhill, I will predict that within the next ten years, that the people might become angry enough to overthrow this government and the Rich rats that swim along with it.
Just look at history, and what happens when the wealth becomes top heavy.
No regulation, no protection, no economy.
Got no time for Lou Dobbs.
FLASHBACK:
–> Economists Predicted That A Prolonged U.S. Presence In Iraq Could Lead To A Recession
http://thinkprogress.org/2008/.....recession/
Tony @ 1:
If many people are going to use refund checks to pay off bills (an understable use), then they are essentially saving the money by making their savings a bit less negative. In essence, the money would be transfered abroad since we are net debtors. Once the money is back in foreign hands -will they pump it back into the U.S. economy? Maybe not if they see a bad recession.
So this is the challenge of a stimulus package, how to pump money directly into the U.S. economy. Instead, both sides are taking advantage to talk about the same old tired reasons of why such and such group needs a tax break. The goal is to avert a recession, so pump the money where it will have the most bang per buck. I’m not holding my breath that Washington will chose the wisest and most productive course.
SFnomad @ 25:
Hey it works great for health care donca know.
Ya but did Lou blame those nasty immigrants like he does EVERY show.
I’m just comforted by the fact that despite six years of virtually unilateral Republican rule - from Congress to White House to SCOTUS - Dobbs and friends can still slip in “Democrats did it too” on every other word.
Reagenomics? Supply Side Free Market Bullshit? Deregulation for deregulation’s sake? Yeah, that all sounds pretty bipartisan to me. Heaven forbid we give credit where credit is due. Just blame Washington carte blanc, and we can spend the rest of the hour talking about how our current economic slump is probably Bill Clinton’s fault after the break.
*gag*
Elites Converge on Davos for The New World Order Economic Forum
http://tinyurl.com/2g8ahu
If anyone thinks the government should run anything, take a trip to your local DMV…the combo of attitude, mismanagement and customer stupidity will have anyone wanting privitazation of just about everything.
I’d love to buy products made in the United States. Someone please tell me when some start getting made.
SFnomad @ 16:
No, just commenting that Schumer and Clinton basically were behind
the scenes torpeoding any move to adjust that loop hole.
After all, it’s a fact a lot of the new Hedge Fund Billionaires are NY
Democrats, and we wouldn’t want that DLC money drying up….
The Smiths Have Had Enough @ 27:
We don’t have a country anymore. It’s owned and manipulated by the “free” marketers who have profited handsomely by manipulating markets and buying up the House and Senate — and, since 2000 at least, (but probably all the way back to 1980) the White House. If you were one of the fortunate few to get a seat at the table, your place is secure regardless of the mess we’re in. In fact, the worse the better for you. The rest of us can just try to hang on by our cracked and bleeding fingernails until things are allowed to settle back into a less chaotic norm.
ray @ 40:
I rather enjoy going to my local DMV - sorry to counter your example. How ’bout this one - hasn’t the USPS been moving to a corporate/business model if not outright privatization? How’s that been going?
The rebates are just little bribes with a hope there is a small (temporary) uptick in the economy.
This is an election year, after all.
The only way to change this tide is to completely change the way we run our government.
Change, and by that I mean FIX, the economy/fiscal policy, banking/credits laws, bankruptcy laws, the war, health care, rebuilding/fixing the infrastructure, open government, bad immigration policy, tax laws, bad management, bad foreign policy, poverty, energy policy, etc, etc.
(you can add to my list, let’s see how long we can make it),
It is not the will of our politicians who are bought and paid for by huge corporations and the rich that run them.
I don’t want the F**’n money if they don’t/won’t fix the most pressing problems we are facing.
That stimulus money will just run out of my pocket right to the rich, and maybe some more for China and Saudi Arabia.
Anyone notice Gas is up 75%, health care/pharma outta sight? It’s only the beginning, folks. Wait until next year’s food prices… (but hey, I can still buy a T-shirt at WallMart for $3).
It will not change until we take the money out of politics, and who makes the laws? Not me, not you.
This country will be looted until we are completely br