Rolling Stone muckraker Matt Taibbi has been contributing some excellent, counter–conventional wisdom blog pieces at True/Slant. This excerpt from today’s post, “Good News on Wall Street Means…What Exactly?” provided that rare instance of someone else summing up exactly what I was thinking much better than I could have.
No one mentions here that this is a carrot-and-stick story — the stick being that ordinary people have been robbed of the interest they should be getting in CDs and ordinary bank savings accounts by the various bailout programs and lending guarantees, which have brought the cost of capital down to nothing for the big banks, and punished those people who have been doing the right thing all along by saving. The Fed lends its money to Goldman Sachs and BOFA for free, why does anyone have to pay Grandma a high rate for her CD or her bank savings?
His April post, “The Peasant Mentality Lives on in America,” is also beautifully blunt.