By William Greider
Henry Paulson's $700 billion plan to save the world is dead or dying, but the bailout was not killed by his arrogance or his grossly misleading claims about what the public's money would buy. The plan collapsed because it didn't work. The Treasury secretary has launched a PR offensive to revive his falling influence. Too late. The Democrats should be equally embarrassed. In September their leaders in Congress rushed to embrace the Paulson solution, no hard questions asked. They now claim they were duped.
Paulson's squad at Treasury pumped $250 billion into the largest banks, buying their stock at inflated prices on the assumption it would persuade investors to step forward with their capital too. Instead, savvy financial players realized Paulson was spitting into a high wind, trying to save a system with stout talk.
In the absence of any reasonable plan Peacenik thinks Greider may have a good idea. Global capitalism has failed. North America is about to become third world like. Its time for some radical, progressive leadership. The crisis can't wait for Jan. 20. Peacenik thinks Peacenik will go to a hockey game, drink some beer and forget about Wall Street. Have a good weekend.
