The Bailout

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THE BAILOUT….Matt Yglesias looks at the past year of economic upheaval and says:

This is why the right response to a Bush/Paulson decision that we have to “do something” would probably be to take their specific proposal, light it on fire, and then call up some people who hadn’t spent the past 12 months ignoring festering problems and ask them to help you write a proposal.

This is unfair. Bernanke and Paulson have, in fact, taken tons of action over the past year. They’ve injected massive amounts of liquidity into the market through multiple term lending facilities, slashed the discount rate, opened up the discount window to all comers, passed a big stimulus package, and have become willing to accept everything from double-wides on up as collateral for loans. None of it worked. But even at that, they’re still having trouble getting everyone on board for a systemic bailout bill. Does anyone seriously think they could have proposed something like this a year ago and gotten anything but guffaws from Congress?

On the other hand, my left-wing populist instincts are just fine with this:

If anything should be done, the case seems clear for wildly higher tax rates on high-income individuals than prevailed during the Clinton years. Are we afraid of stifling the kind of fat cat activity that’s brought us to our current situation?

OK, I don’t know about “wildly.” But we could use a few more brackets with higher marginal rates for very high earners. The negative effect on the economy, contra modern supply side goofballism, would be about zero.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

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