Wednesday, May 14, 2014

Reich on Geithner's new book about the bailout

Former Treasury Secretary Tim Geithner has a new tell-all book, Stress Test, in which he praises the success of the bank bailout. Robert Reich begs to differ. Yes, the bailout prevented a complete meltdown, but like a nuclear reactor's partial meltdown there are many extant consequences and unaddressed causes. The banks are bigger than ever, thereby making them beyond to big to fail and thus encouraging further disasterous risk taking knowing there will be no consequences. No one went to jail, adding to the further irresponsibility and recklessness. The bailout did little to nothing to the millions of lives destroyed by the meltdown.

And new laws have been so watered down as to be ineffective, and the reinstatement of the real laws that could make a difference have been lobbied out of existence. This old adage has been completely ignored and the result will be another impending and inevitable financial disaster: Those who fail to learn the lessons of history are doomed to repeat it. But they don't care, it won't affect them except to further enrich them like the last time.

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