The author of the nakedcapitalism blog tells it like it is:
Washington DC appears to be readying itself for a repeat of the TARP, namely, the passage of unpopular legislation to appease the Market Gods (and transfer even more income from ordinary Americans to the Masters of the Universe). It isn’t yet clear whether this drama will be played out via generating bona fide financial market upheaval or mere threat-mongering (the Treasury market seems pretty confident that well-trained Congresscritters will fall into line). But unlike the TARP, which was a classic example of well-placed interests finding opportunity in the midst of upheaval, this reprise is a far more calculated affair.
Also worth reading:
The American people understand that the wealthiest people in this country are becoming wealthier while their effective tax rates in recent years have declined to the lowest level in modern history. They know that large multi-national corporations and Wall Street firms are earning billions in profits and, in some cases, paying nothing in federal income taxes. They know that military spending has nearly tripled since 1997 and that the wars in Iraq and Afghanistan drag on and on and on – at great expense to our taxpayers.
They also know that the middle class is disappearing, poverty is increasing and that this terrible recession is causing extraordinary suffering for working families, the elderly, the sick and the children.
But, unless we fight back vigorously, Congress and President Obama will give the American people exactly what they don’t want.
Kucinich is even more clear on exactly what’s going on:
Washington, Jul 25 –
Congressman Dennis Kucinich (D-OH), who has ardently defended Social Security, today released the following statement regarding attempts to inject Social Security into an unrelated debate about the debt and the deficit.
“Social Security is strong. It is not a government piggy bank and it is 100% fully funded until 2036.
“Social Security has been falsely interjected into a discussion about our nation’s debt and deficit. Seniors have been threatened that their checks will not go out and that long term cut backs could include an extension of the retirement age and reductions in benefits. This is a false solution to a fake crisis.
“It is simple to fix the long term concerns about Social Security: Lift the caps on taxable income for Social Security. The numbers show that it is the best way to ensure the viability of Social Security for the next 75 years. Lifting the caps is the most equitable way to strengthen Social Security because everyone in society fully participates.