The Progressive magazine’s Matthew Rothschild takes aim at the corporate-welfare scheme:
With Wall Street prostrate and coming cup in hand, you’d think that Bush and Congress would exercise some leverage and good sense so this won’t happen again.
But even today, they aren’t proposing the resurrection of Glass-Steagall, or the abolition of the Commodities Futures Modernization Act.
Even today, they aren’t taking the simple and logical step of demanding that the financial institution that gives the mortgage to the customer must hold onto that mortgage—and not be allowed to resell it. That would make the lender more prudent, and what got us into this mess was imprudent, aggressive, and dishonest lending.
What’s more, since the proximate cause of the collapse is the rash of foreclosures, you would think that Bush and Congress would be proposing a moratorium on foreclosures and a freeze on mortgage interest rates. But they’re not doing that, either.
No, with Wall Street begging, Bush and Congress are giving them everything—and we’re barely getting anything in return.
Indeed. What happened to by, of and for The People?