SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
Geithner's Plan: Like an Oil Spill
Mar 24, 2009
Twenty years ago this week, the Exxon Valdez ran aground, spilling ten millions gallons of filthy oil over 10,000 square miles of Prince William Sound. The Exxon corporation spent the next two decades fighting paying punitive damages to the victims. Announced, by coincidence, on the anniversary of that disaster, the Obama administration bank rescue plan is about as comforting as Exxon's clean up.
The economy's drowning in bad assets; trillions of dollars worth. The Treasury proposes renaming that bad stuff "legacy assets" and hopes to drive up the price by paying private investors to buy them. Go ahead and buy -- the Treasury says -- the taxpayer will take the hit if those toxic assets turn out to be, well, toxic.
Like Exxon, which has gone in for a major publicity make-over, pushing renewable energy in advertising even as it funds global warming denial, Geithner's hoping to persuade investors to engage in a whole new round of protected gambling, the very phenomenon that got us into this mess in the first place. Those "complex derivatives" aren't bad, just undervalued, he claims, victims of public panic. Treasury's willing to push a few cheap hits in the hope that a little free dope will get the hedge funders addicted again.
There's just one catch: those derivatives are bad: bad bets upon bad bets, based on cost-free betting. Traders gambled, reaped the profits in transaction fees and walked away. Kind of like Exxon: profiteering off the good days and reaping the private gain from public resources, and throwing back the cost of environmental clean up on public tax payers.
The same commanders are at the helm. As Frank Rich and others have reported, Larry Summers can't admit fault: he helped torpedo the regulation of derivatives while he was in the Clinton administration.
It's kind of like Alaska. Years after the Exxon Valdez belched guck all over the Alaska coast, ruining a fishing industry and bankcrupting a people, the financial industry's flooded our economy with garbage, and we're going to let the ships captains control the clean up?
Ask the Alaskans how well that worked. Not so bad for Exxon, less well for the people and the planet.
Why Your Ongoing Support Is Essential
Donald Trump’s attacks on democracy, justice, and a free press are escalating — putting everything we stand for at risk. We believe a better world is possible, but we can’t get there without your support. Common Dreams stands apart. We answer only to you — our readers, activists, and changemakers — not to billionaires or corporations. Our independence allows us to cover the vital stories that others won’t, spotlighting movements for peace, equality, and human rights. Right now, our work faces unprecedented challenges. Misinformation is spreading, journalists are under attack, and financial pressures are mounting. As a reader-supported, nonprofit newsroom, your support is crucial to keep this journalism alive. Whatever you can give — $10, $25, or $100 — helps us stay strong and responsive when the world needs us most. Together, we’ll continue to build the independent, courageous journalism our movement relies on. Thank you for being part of this community. |
© 2023 Laura Flanders
Laura Flanders
Laura Flanders interviews forward-thinking people about the key questions of our time on The Laura Flanders Show, a nationally syndicated radio and television program also available as a podcast. A contributing writer to The Nation, Flanders is also the author of six books, including "Bushwomen: How They Won the White House for Their Man" (2005). She is the recipient of a 2019 Izzy Award for excellence in independent journalism, the Pat Mitchell Lifetime Achievement Award for advancing women's and girls' visibility in media, and a 2020 Lannan Cultural Freedom Fellowship for her reporting and advocacy for public media. lauraflanders.org
Twenty years ago this week, the Exxon Valdez ran aground, spilling ten millions gallons of filthy oil over 10,000 square miles of Prince William Sound. The Exxon corporation spent the next two decades fighting paying punitive damages to the victims. Announced, by coincidence, on the anniversary of that disaster, the Obama administration bank rescue plan is about as comforting as Exxon's clean up.
The economy's drowning in bad assets; trillions of dollars worth. The Treasury proposes renaming that bad stuff "legacy assets" and hopes to drive up the price by paying private investors to buy them. Go ahead and buy -- the Treasury says -- the taxpayer will take the hit if those toxic assets turn out to be, well, toxic.
Like Exxon, which has gone in for a major publicity make-over, pushing renewable energy in advertising even as it funds global warming denial, Geithner's hoping to persuade investors to engage in a whole new round of protected gambling, the very phenomenon that got us into this mess in the first place. Those "complex derivatives" aren't bad, just undervalued, he claims, victims of public panic. Treasury's willing to push a few cheap hits in the hope that a little free dope will get the hedge funders addicted again.
There's just one catch: those derivatives are bad: bad bets upon bad bets, based on cost-free betting. Traders gambled, reaped the profits in transaction fees and walked away. Kind of like Exxon: profiteering off the good days and reaping the private gain from public resources, and throwing back the cost of environmental clean up on public tax payers.
The same commanders are at the helm. As Frank Rich and others have reported, Larry Summers can't admit fault: he helped torpedo the regulation of derivatives while he was in the Clinton administration.
It's kind of like Alaska. Years after the Exxon Valdez belched guck all over the Alaska coast, ruining a fishing industry and bankcrupting a people, the financial industry's flooded our economy with garbage, and we're going to let the ships captains control the clean up?
Ask the Alaskans how well that worked. Not so bad for Exxon, less well for the people and the planet.
Laura Flanders
Laura Flanders interviews forward-thinking people about the key questions of our time on The Laura Flanders Show, a nationally syndicated radio and television program also available as a podcast. A contributing writer to The Nation, Flanders is also the author of six books, including "Bushwomen: How They Won the White House for Their Man" (2005). She is the recipient of a 2019 Izzy Award for excellence in independent journalism, the Pat Mitchell Lifetime Achievement Award for advancing women's and girls' visibility in media, and a 2020 Lannan Cultural Freedom Fellowship for her reporting and advocacy for public media. lauraflanders.org
Twenty years ago this week, the Exxon Valdez ran aground, spilling ten millions gallons of filthy oil over 10,000 square miles of Prince William Sound. The Exxon corporation spent the next two decades fighting paying punitive damages to the victims. Announced, by coincidence, on the anniversary of that disaster, the Obama administration bank rescue plan is about as comforting as Exxon's clean up.
The economy's drowning in bad assets; trillions of dollars worth. The Treasury proposes renaming that bad stuff "legacy assets" and hopes to drive up the price by paying private investors to buy them. Go ahead and buy -- the Treasury says -- the taxpayer will take the hit if those toxic assets turn out to be, well, toxic.
Like Exxon, which has gone in for a major publicity make-over, pushing renewable energy in advertising even as it funds global warming denial, Geithner's hoping to persuade investors to engage in a whole new round of protected gambling, the very phenomenon that got us into this mess in the first place. Those "complex derivatives" aren't bad, just undervalued, he claims, victims of public panic. Treasury's willing to push a few cheap hits in the hope that a little free dope will get the hedge funders addicted again.
There's just one catch: those derivatives are bad: bad bets upon bad bets, based on cost-free betting. Traders gambled, reaped the profits in transaction fees and walked away. Kind of like Exxon: profiteering off the good days and reaping the private gain from public resources, and throwing back the cost of environmental clean up on public tax payers.
The same commanders are at the helm. As Frank Rich and others have reported, Larry Summers can't admit fault: he helped torpedo the regulation of derivatives while he was in the Clinton administration.
It's kind of like Alaska. Years after the Exxon Valdez belched guck all over the Alaska coast, ruining a fishing industry and bankcrupting a people, the financial industry's flooded our economy with garbage, and we're going to let the ships captains control the clean up?
Ask the Alaskans how well that worked. Not so bad for Exxon, less well for the people and the planet.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.