Noam Chomsky on Tim Geithner and bank bailout plan, democracy vs. corporations

[syndicalist]

My crappy summary: Chomsky says banks getting cash for trash, government technically owns stakes in many of them but won't utilize it, instead basically doling out public money to private industry heads; supports economist Dean Baker and James K. Galbraith's ideas to split up AIG (sever finance unit from rest of company), aggressively use FDIC to

Comments

[syndicalist]

manic street preachers?

[hellooo]

I got a chance to meet him after a lecture on Israel and Palestine; he always has really interesting ideas worth listening to.

(Apparently, he'd never given a high-five until a classmate of mine taught him what it was?)

[bord_du_rasoir]

"taught him what it was"

lol

[syndicalist]

He also referred to Google as "The Google" in an interview not too long ago. Look, he doesn't have time for these petty cultural nuances!

[bord_du_rasoir]

"supports economist Dean Baker and James K. Galbraith's ideas to split up AIG (sever finance unit from rest of company)"
I like this idea. Let's lobby Congress to pressure Obama and Geithner into this. I want to see Teddy Roosevelt-Obama comparisons by May.

"aggressively use FDIC to put more banks into receivership"
I looked up "receivership" and got this:
"a court action that places property under the control of a receiver during litigation so that it can be preserved for the benefit of all"
So then, "receivership" is just another way of saying nationalize the banks?

[syndicalist]

He explains what he means by it int he last 3rd of the video. If you want to call it 'nationalization,' yeah -- but my understanding is 'receivership' is the term used by the FDIC, etc.

Galbraith was asked in a recent interview, "What do we do with all these banks that have troubled/toxic assets." His reply was very succinct: We have a program that deals with this, it is called the FDIC, and the FDIC puts a bank into receivership [takes it over]." That seems to be hard for ideologically stubborn folks to grasp, even though the US has had it since the 1930s and used it in, say, the S&L crisis under Reagan.

The FDIC can make a 'bridge bank' wherein the govt seizes it, cleans out management, opens the books for public investigation, and either dissolves the bank after making sure its deposits, etc., were reimbursed, or prepares it to re-enter the private sector, whatever the public wants (ostensibly).

http://en.wikipedia.org/wiki/Bridge_bank

[veidt]

I believe that's what it is. I think Krugman also suggested doing that as well.

[syndicalist]

As far as I am aware, the Paul Krugman-Dean Baker-James K. Galbraith-Noam Chomsky wing of the left are all on board with these basic ideas.

Geithner is still trying to punt the ball forward until industry CEOs decide to start being nice.

[idiocr4cy]

I will be sad when Chomsky passes away. :( Very very sad.

[syndicalist]

i'd rather not think about it :

[hellooo]

I don't know what you're talking about; it's not going to happen.

But he seemed really...much-younger-than-80 when I saw him, if that's reassuring.

[elle_vee]

That will never happen, for he is eternal and ageless like the moon, or rock 'n roll.

Plus, he's a wizard, and everyone knows wizards are immortal.

[box_in_the_box]

I don't know what it is about Chomsky ... I mean, the guy's clearly fucking intelligent, and he has a lot of good ideas that I agree with (minus his completely fucked ideas on language), but something about him always just rubs me the wrong way.

Maybe it's just that I'm petty enough to be bothered by the idea of being lectured on how us younger people should be rebelling The Proper Way by a guy who often seems to barely understand the very same culture that he's criticizing, which makes him comee across to be as The Left's Answer To The Grumpy Old Man Who Wants Us Kids To Get Off His Lawn.