Sunday, December 21, 2008

We WERE Punked

Hale "Bonddad" Stewart at the Huffington Post [1] counters the argument I made on Rachel Maddow's MSNBC show this week [2] and that I've been making in my columns and blog postings for the better part of the last three months. He says the American people weren't deceived on the Wall Street bailout; implies that handing over a trillion-dollar no-strings-attached blank check to the financial industry was perfectly appropriate; and explicitly states that "to say we were 'punked by Wall Street' flies in the face of every available fact on the crisis."

Oddly, Bonddad then goes on to prove - arguably better than anyone else to date - that we were, in fact, punked.

Bonddad spends most of his post telling us that banking profits are down, noting that "financial stocks are down almost 70% since the summer of 2007." No argument there from me, or anyone else. He creates a straw man by suggesting that many people are claiming there was no "serious problem with the financial system that needed fixing" - nobody, not me, not even the authors of a controversial Minneapolis Fed report, claim there isn't a real financial problem. He then goes on to note that the Federal Reserve Bank's Beige Book has been saying that credit conditions were somewhat tightening before the bailout and - here's the most important part - that "loan demand was decreasing." Again, no argument there from me, or anyone else.

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