Democracy for Vancouver

Funny how 60 Minutes managed to get exclusive access to Henry Paulson during the two weeks in which he was preparing to pitch his heads-I-win-tails-the taxpayers-lose $700 billion bailout.

I wonder who Paulson called to set that up? Maybe CBS President Les Moonves? As one of the highest-paid CEOs in the country, I’m sure old Les has got a lot on the line in terms of stocks and other investments.

And funny how while Scott Pelley, in voiceover, told of Paulson’s history as CEO of Goldman Sachs, Pelley never mentioned how Paulson was known as “The Hammer” and “Mr. Risk” during his tenure as CEO, or that he took Goldman Sachs debt position from $20 billion to $100 billion during that same period.

Nor did Pelley ask how Paulson’s leadership as CEO of Goldman Sachs led to the very bailout Paulson is now asking the taxpayers to swallow whole.

Pelley also failed to ask what the thinking was behind Section 8 of Paulson’s initial 3-page plan presented last week:

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

All in all, a win-win for Paulson - he presents his side of the story, looks humble and apologetic, and convinces a few more congresspeople to bend to his will in the final negotiated plan that will give Congress oversight but - at least with the current makeup of the House and Senate - little control over how much money the President gets to give Treasury:

Lawmakers could block half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary [HAHAHAHAHAHAHAHAHAHA - just like Congress gave him authority to take over Fannie Mae and Freddie Mac "if it proved necessary"?], and the last $350 billion with a separate certification - and subject to a congressional resolution of disapproval.

Still, the resolution could be vetoed by the president, meaning it would take extra-large congressional majorities to stop it.

If you haven’t yet, please read Naomi Klein’s The Shock Doctrine. No book has ever made me angrier or more clear-eyed about BushCo, and on her blog she describes how this bailout is right out of the Chicago School, and intended to scare us all into giving up everything out of fear.

I don’t think it’s working this time, but it’s the Congress, and not the taxpayers, who are caving.