Deja Vu Anyone else having flashbacks to 2008?

Anyone else think the debt ceiling debate is eerily reminiscent of the TARP debate back in the fall of 2008? I was looking at some threads from then and find the threats and rhetoric tossed around DC almost identical. We were screwed by the banking industry then. I'm willing to admit that TARP bought us time to fix the system, but that time was wasted and the money mostly shifted to continue pay bonuses to the TBTF. Reckoning day is quickly approaching, it will arrive regardless of what happens with this debt ceiling debate the only thing debatable at this point is timing. Neither side is serious about doing what needs to be done to fix the system. The right is ideologically against any raise in revenue (and for pretty good reason historically in these deals, the new taxes come up front and the spending reductions never happen), and the left is ideologically against any cuts in spending (for good reason, when you depend on vote buying any cuts might make those you depend on not show up for you next election).

Despite how fun this is to watch, I'm 100% positive that any deal struck will be to the detriment of all but those most favored by the political caste. It'll be good for the bankers that own both parties. There will be winners and losers in every other constituency but most of the leeches will get their checks be they welfare recipients or white collar leeches like defense contractors.

reply to post by jefwane


The more things change, the more they are the same.
Alphonse Karr


I could go on.... but why beat a dead horse?

I do think your observations are correct though. it just goes to show how long the smoke and mirror trick worked. Thowing billions of dollars at the bankers 3 years ago helped no one but the bankers. Those leaches at the fed are fiddling why rome is burning.

reply to post by jefwane


After all the lies they've told us, them telling us that everythings gonna be fine next week is complete BS.
Expect Global Meltdown...again...

You're not the only one to have observed the correlation. I've seen it mentioned in a few readings.

Yup just waiting on the "Tanks in the Streets",and "End of the World as We Know It" hyperbole. Paulson was definitely better at that type of crap than Giethner apparently.

Nobody in CONgress respects Giethner, he can't even cheat on his taxes without getting caught. Skeletor on the other hand they were afraid of before he was in government.

What's next in the playbook? Get Bernanke to pull liquidity so markets do seriously tank and something must pass? It worked last time why not now, and I've never heard anyone in the MSM has ever bring this up when it's plain as day when you look at SOMA from those days. OOH here's one, I'm not sure if TOTUS or POTUS could do this without Congress, but they could print up some US notes to pay the bills if they can't borrow some FRNs. Hell Ben could even fire up the helicopters to distribute it.

I say the US note thing only half in jest. Any nation with control of its own currency could simply print money to pay the bills hence no default. Such an act is seriously inflationary, but technically is not a default in any sense of the word. Greece and other members of currency unions and those that have pegged their own currency to the dollar either lack this power or must first un-peg to print in comparison.