Get Ready Now For The
Next Great Recession
It's only a matter of time
May 23, 2018
By B. Tanner
Once that dereg bill is signed by billionaire Donald Trump, it is only a matter of time before jobless men and women will be the order of the day...once again.
Chronicle news & opinion
(NATIONAL) – It is Wednesday July 23, 2008. Smack dab in the heart of the brutal economy crash/fiscal crisis that started on Republican President George W. Bush’s watch.
On that July 23rd in the British newspaper The Independent, a story by Leonard Doyle talks about George’s Bush’s comments to a room of high-rollers at a private gathering in Texas.
Bush used the metaphor (for the first and only time) of a drunk when somebody asked him what happened, what caused America’s financial meltdown.
From Doyle's report:
"Wall Street got drunk," Mr Bush told a private gathering in Texas as he sought to explain why the world's biggest and most complex economy was teetering on the brink of recession...there's no question about it," Mr Bush said. "Wall Street got drunk, that's one of the reasons I asked you to turn off the TV cameras. It got drunk and now it's got a hangover. The question is how long will it sober up and not try to do all these fancy financial instruments."
The brutality of it
It was brutal, that Great Recession. People lost their homes, careers, jobs, businesses, retirement savings, self respect, dignity. They lost it all.
And millions of Americans to this day have never recovered from the Great Recession as the jobs they lost and the industries their towns lost, left them in an economic no man's land from which they could never recover.
So how and why was Wall Street allowed to go on that wild drunken bender? Simple. Over time Republicans (and some Democrats) got what they wanted: the banking industry deregulated.
All of a sudden the staid old banking biz got wild, exotic, intoxicating, exciting and care free and many an investment bank became high rolling gamblers on crazy schemes like “derivatives.”
It was a damned wild west. Why? Because deregulation allowed them to maximize their profits and socialize their losses – meaning the public got left holding the bag of losses when the drunken bender was over. But by that time the big investment banks, their CEO’s, executive teams, sales people, brokers, board members, the investor class that owns the shares in those banks….they’d all made millions and in some cases billions of dollars and they were home free.
You may recall the taxpayer – YOU, via decisions made by your elected lawmakers - bailed out the big banks to the tune of billions of YOUR dollars, but the government never bailed out the millions of Americans who lost everything.
Those folks didn't matter. The big banks did. It was important the big banks got YOUR money to bail them out so they wouldn't collapse. What a swell thing deregulation turned out to be.
Fast forward now to Tuesday.
The House Of Representatives finalized the largest package of Wall Street banking deregulation since the financial crisis -- rolling back regulations on financial firms, everything from community banks to credit-reporting agencies.
The bill passed by a vote of 258 to 159 and will head to President Trump's desk for his signature. He is expected to sign it.
The proponents of this unholy move back to the dark past say it's going to make everything just swell – boost the economy, free up regional banks to provide consumers access to credit, etc., etc., and so forth and so on.
Same crap they fed to us all last time around.
Opponents (including a lot of Democrats who are the only smart people in the room on this because they remember the past and what happened the last time we went down this deregulation lane) say this bill (1) undermines important and critical protections passed in the Dodd-Frank Act and (2) could help lead to a repeat performance of another financial crisis that in turn could lead into an even worse recession than the last one.
Maybe another Great Depression.
Smart Americans have learned one thing from the last time bankers got drunk and “went on a bender.” They told Americans the same lie about deregulation back then, how great it was going to be for the average Joe and Jill Sixpack.
It was a lie then, it is a lie now. Start saving your money. Go cash heavy and debt light because once this abomination is signed into law, the clock is ticking until the next Great Recession/Depression begins.
Bank on it.