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October 12, 2009

H/T Gerald: Recent appearances by Marcy Kaptur and a Glenn Greenwald column report this most important yet least discussed effect of the economic crisis.

Yep, it's a silent coup. The truth basically is what Naomi Klein said last fall, what Matt Taibbi wrote last spring, and what Marcy Kaptur has been saying all along on the House floor.
Klein: What I argue in the piece is that we actually have it backwards. It's not the banks that have been partially nationalized; it's Treasury that has been partially privatized by the very banks that created the crisis in the first place.
I will add as well a link to this striking post today from Jerome a Paris:

One (or two) years on - they have learnt nothing
October 12, 2009 - The Oil Drum: Europe
Just over one year after it became impossible to deny that the financial crisis that had started in 2006/2007 was a major, systemic event, it is rather depressing to see that nothing has really changed and, to the contrary, if anything has, it is for the worse.

The most striking item, of course, is the continued dominance of politicians by bankers. Banks are universally seen - including by bankers - as being at the heart of the problem, and having created the crisis through reckless behavior and worse. And yet, after having being bailed out at a staggering cost, in a highly asymmetrical way (the losses were socialised, but not the banks), not only have they managed to eliminate the likelihood of any meaningful regulatory change, but more importantly they have managed to maintain the fiction that finance was the reason for earlier prosperity and should thus be protected as a source of future prosperity.
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