Olbermann talks to Chris Hayes of The Nation about the latest round of bailouts and the now familiar scenario of privatized profit and socialized loss that’s come to characterize he so-called “free market economy” as it’s been crafted by the imagineers of Bushworld over the past eight years, that yesterday resulted in the biggest government intervention in financial markets since the 1930s.
Appearing on CNBC yesterday, Sen. Charles Schumer described the doomsday scenario delivered by Treasury Secretary Henry Paulson and Federal Reserve Chair Ben Bernanke during their meeting Thursday night with members of Congress.
Well, if the credit markets remain frozen and no one can get loans and banks can’t transfer, then the whole economy basically comes to a halt. There is no — there’s no lending. No one buys cars, because you can’t get a car loan. People don’t go to stores, because you can’t get a credit card loan. Small businesses don’t grow and even some of them don’t continue, because they can’t get a line of credit.
The picture that was painted was not that just Wall Street firms were having trouble, but all of our financial markets, and the potential of a long freeze in the veins of our system as — could kill the patient.
Yikes! Kill the patient… pretty grim stuff. Meanwhile, John McCain indicated on Friday that he doesn’t know the first thing about the role of the Fed, stating at a rally in Green Bay, Wisconsin that “the Federal Reserve should get back to its core business of responsibly managing our money supply and inflation. It needs to get out of the business of bailouts.” McCain it seems doesn’t understand that the prevention of large-scale bank failures (aka “bailouts”) is an essential part of responsibly managing the money supply. Oy. Did I mention that he was a POW?