Dealing With Bankrupt Banks: Nationalization or Welfare

Dealing With Bankrupt Banks: Nationalization or Welfare

by Dean Baker
http://www.prospect.org/csnc/blogs/beat_the_press


The media continue to do more to misinform the public than to inform them when it comes to plans for fixing the financial system. Following the absolute worst in journalistic practices, a front page Washington Post article explains the Obama administration's policy by telling readers that the "approach reflects Treasury Secretary Timothy F. Geithner's philosophy of how governments should respond to financial crises."

Trees had to die for this garbage? The reality is that the reporters have no clue as to what Timothy F. Geithner's philosophy of how governments should respond to financial crises. The reporter knows what Timothy F. Geithner told them, so why don't they just stick to passing this information along to readers instead of speculating about his innermost thoughts?

The excursion into philosophy deflects readers from the real issue. Mr. Geithner wants to use taxpayer dollars to keep bankrupt banks in business. In effect, he wants to tax teachers, fire fighters, and Joe the Plumber to protect the wealth of the banks' shareholders and to pay high salaries to their top executives. No readers of this piece would understand that this is the process being described.

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It would be nice if the Post and the rest of the media would report honestly on the bank bailout and stop trying to conceal plans for a massive redistribution of wealth to the bank shareholders and their top executives.


k & r.