US Banking Lobby Threatening the US Economy

The hidden story in all this mess is: The US banking lobby and Secretary Paulson are putting our economy at risk amidst complete disagreement by nearly all global players and a strong preponderance of economists, they still persist with self-motivated plans to benefit banks first, economy and taxpayers, second and third. The story is only beginning to crack through network media, but the real story dominates academic and business media. Even European banks and governments have fully recognised that cash-for-equity is the only proper course.

The bank lobby and Paulson have cost us weeks of critical time and confidence. Productive corporations should be at war with the banks and Paulson, watching their stock prices plummet while Paulson dithers and holds out on behalf of the bank lobby. Two days ago, he finally publicly accepted re-capitalizing banks, but without discussing how much of the 700B he would use for one and the other. Days continue to pass without the market having the details. Productive, non-financial corporations and the American people can squarely put the blame for the cause of this crisis and the greed in the middle of the crisis on the American banking lobby and Paulson. The fact that the banking lobby and Paulson have not yet fully capitulated to the super-majority (backed by the science and data of prior crisis') on October 11 shows just how entrenched and shameless these interests have become.

It's starting to crack through here, here .

But, Paulson and the bank lobby will not give up on the free lunch of taxpayers buying toxic assets without equity in banks. The US government remains the final holdout for this position and Paulson will not relent no matter how much confidence we are losing around the world.

The bank lobby and Paulson's position is a clear and present danger to this country. You will not find one recognized economist who agrees with their position. Yet, amazingly, these economists are not invited on the major networks to lobby for the correct plan. Bush, Paulson and the bank lobby still manage to dominate network news and America's perceptions of this crisis. That could be the most significant problem of the past two weeks.