Michael Hudson: Rescue for the Few, Debt Slavery for the Many

Dr. Hudson's latest at Counterpunch, [excerpt] "This means that the postmodern economy as we know it must end – either in financial polarization and debt peonage to a new oligarchic elite, or in a debt cancellation, a Jubilee Year to rescue society. But when the government says that it is reviewing “all” the options, this reality is not one of them. Treasury Secretary Henry Paulson’s first option was to buy packages of junk mortgages (collateralized debt obligations, CDOs) to save the wealthiest institutional investors from having to take a loss on their bad bets. When this was not enough, he came up with “Plan B,” to give money to banks. But whereas Britain and European countries talked of nationalizing banks or at least taking a controlling interest, Mr. Paulson gave in to his Wall Street cronies and promised that the government’s stock purchases would not be real. There would be no dilution of existing shareholders, and the government’s investment would be non-voting. To cap the giveaway to his cronies, Mr. Paulson even agreed not to ask executives to give up their golden parachutes, exorbitant annual bonuses or salaries. ..." Read Rescue for the Few, Debt Slavery for the Many There is also a huge 55 meg download of a "Guns and Butter" show where Hudson appears for the complete one hour program. It's worth listening to, if you don't have time to read. It is located here, click "The New Kleptocracy" at his web site.