CAN'T MISS Bill Moyers' Journal tomorrow night - Wall St. Rescue Report w/Marcy Kaptur

http://www.pbs.org/moyers/journal/index-flash.html



October 9, 2009

One year after the near-collapse of the U.S. financial system, the crisis seems to be over for the banks. No one expects any of the remaining huge banks to collapse, and a few large firms — JPMorgan Chase & Co., Goldman Sachs Group and Wells Fargo — are expected to post another quarter of billion dollar profits.

But according to guests on BILL MOYERS JOURNAL, ordinary Americans have little reason to celebrate the better fortunes on Wall Street. Simon Johnson, professor of Global Economics and Management at MIT's Sloan School of Business, and Representative Marcy Kaptur (D-OH), explain to Bill Moyers that the outlook for the rest of America isn't so rosy. Not only are many Americans still suffering the collapse of the housing market, they say, but Congress and the president haven't made the changes needed to prevent a much worse catastrophe sometime in the future.

To highlight the disparity between bailing out the banks and helping homeowners, Rep. Kaptur points to her district, where she sees one of the now-profitable banks not doing enough to help struggling borrowers:



Johnson adds that even bailed-out banks have little incentive to help homeowners:



Too late to reign in the banks?

The problem, Rep. Kaptur and Johnson agree, is that Congress and the Executive Branch didn't sufficiently reign in the banks because the banks have too much power in Washington. Responding to a recent ASSOCIATED PRESS report about Treasury Secretary Timothy Geithner's close ties to a few powerful bankers, Rep. Kaptur said, "Wall Street and Washington is a circuit. And because Mr. Geithner headed the New York Fed, that historic relationship, unfortunately, continues. And it gives them special access and special power to influence policy."

Johnson agrees, arguing that these links are especially beneficial in a time of crisis: "And in a crisis, when everything is up for grabs, you don't know what's going on, the people who will take your phone calls, right, in government and the people who are going to be standing in the oval office, making the key decisions — that's the heart of the system. That's the heart of how you get your agenda through, by changing their worldview."

Rep. Kaptur believes that Congress has also failed to use its power to hold the banks accountable for their actions: "Congress has really shut down. I'm disappointed in both chambers, because wouldn't you think, with the largest financial crisis in American history, in the largest transfer of wealth from the American people to the biggest banks in this country, that every committee of Congress would be involved in hearings? <...> What we're seeing is tangential hearings on very arcane aspects of financial reform <...> rather than hearings on the fundamental new architecture of reforming the American financial system."

And now that the banks have stabilized, they may have successfully prevented any meaningful reform. Johnson explains that "the crisis is essentially over. The opportunity for real reform has already passed. And, not only is there not going to be change, but I'll go further. I'll say it's going to be worse, what comes out of this, in terms of the financial system, its power, and what it can get away with." .........more at: http://www.pbs.org/moyers/journal/10092009/profile.html

And she has one of the best staffs around.

will be watching/ :hi:

Thanks for the info.

The Senate is owned by corporations.

Kaptur is so angry, so much mortgage fraud. She wants 1000 FBI agents to investigate all the fraud.

The video and the transcript are posted at the website
http://www.pbs.org/moyers/journal/10092009/profile.html

Criminals. Toledo is lucky to have her.