If you have "no place to go," come here!

Big Oil, Big Money, Big FAIL

Nice metaphor from George Washington:

As I noted in May - shortly after the spill started - the responses of the government to the Gulf Oil spill and to thae financial crisis are remarkably similar, as both have focused on covering up the problems, instead of actually fixing them. Because the financial system was never really reformed, the next financial shock will send the economy reeling. Because the oil was never properly cleaned up, the next hurricane will stir up immense quantities of oil now lying on the sea floor.

Extend-and-pretend is being attempted in both cases, and - in both cases - it will fail, because nothing has been fixed, and the fundamentals can only remain hidden for so long.

Moreover, in both cases, the government used "highly toxic" measures to try to hide the real problems. The government has used "emergency measures" and virtually all of its resources to prop up the giant banks instead of using the proven methods of restructuring insolvent banks and prosecuting the criminals who caused the crisis, which has caused major problems for the real economy.

Similarly, the government applied close to 2 million gallons of highly toxic dispersant to hide the amount of oil instead of using it's resources to deploy tried-and-true clean up methods, which has caused significant problems for the Gulf.

Finally, new and potentially bigger crises will take place, because regulation hasn't been put in place to prevent them. Regulation of the financial system - including international agreements like Basil III - have been gutted. And as Time magazine notes:

Congress never managed to pass legislation that would have overhauled drilling safety.

Yeah, well, I guess that comes under the heading of "coming together for a common purpose," along with bailing out the health insurance companies, making the big banks bigger. And so on.

No votes yet