By William Greider, The Nation
Posted on December 8, 2009, Printed on December 9, 2009
http://www.alternet.org/story/144452/
The sale pitch for financial-reform legislation pending in the House claims it would put an stop to "too big to fail" bailouts for the leading banks. The reality is the opposite. The federal government would instead be granted unlimited authority to spend whatever it takes to prop up the big boys when they get in trouble. Only in the next crisis, Congress won't have to be asked for the money. The financial rescues will be funded by the secretive Federal Reserve, not the Treasury, with money the Fed itself creates.
And the emergency lending could be pumped into any financial institution in trouble--not just behemoth commercial banks but investment houses like Goldman Sachs, insurance companies, hedge funds or any other pools of private capital whose failure regulators believe would threaten the system.
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