A way out

Senator Bernie Sanders (I-VT) is one of the only politicians that I explicitly trust. He is beholden to no one, smart as hell, and truly believes that government should serve its citizens before all else. I may not agree with everything that the guy believes but when he says something, I never suspect that he has ulterior motives. That is why his plan for fixing our fiscal mess is much more compelling than the bullshit sop to Wall Street that Paulson is peddling right now. He is looking out for you and me.

I have proposed a four part plan to accomplish that goal which includes a five-year, 10 percent surtax on the income of individuals above $500,000 a year, and $1 million a year for couples; a requirement that the price the government pays for any mortgage assets are discounted appropriately so that government can recover the amount it paid for them; and, finally, the government should receive equity in the companies it bails out so that when the stock of these companies rises after the bailout, taxpayers also have the opportunity to share in the resulting windfall. Taken together, these measures would provide the best guarantee that at the end of five years, the government will have gotten back the money it put out.

Second, in addition to protecting the average American from being saddled with the cost, any serious proposal has to include reforms so that we end the type of behavior that led to this crisis in the first place. Much of this activity can be traced to specific legislation that broke down regulatory safety walls in the financial sector and allowed banks and others to engage in new types of risky transactions that are at the heart of this crisis. That deregulation needs to be repealed. Wall Street has shown it cannot be trusted to police itself. We need to reinstate a strong regulatory system that protects our economy.

Third, we need to address the needs of working families in this country who are today facing very difficult times. If we can bail out Wall Street, we need to respond with equal vigor to their plight. That means, for example, creating millions of jobs through major investments in rebuilding our crumbling infrastructure and creating a new renewable energy system. We must also make certain that the most vulnerable Americans don't freeze in the winter or die because they lack access to primary health care.

Finally, we need to protect ourselves from being at the mercy of giant companies that are "too big to fail," that is, companies who are so large that their failure would cause systemic harm to the economy. We need to assess which companies fall into this category and insist they are broken up. Otherwise, the American taxpayer will continue to be on the financial hook for the risky behavior, the mismanagement, and even the illegal conduct of these companies' executives.
People, we are about to receive the rogering of a lifetime. Something along the lines of what Sanders is proposing is the only way we can guarantee that you and I and our kids don’t end up paying for a boondoggle we didn’t create. Wall Street is already into us for billions with damn little for us to show for it. It is time those fuckers start paying their own freight and if that means we buy a stake Goldman, et al., so be it. At least we stand a reasonable chance of breaking even down the road.