As much as Bush and Paulson will try and spin this as just another typical cycle when the economy turns south, they are still understating reality. They are attempting to spin this massive failure which Goldman forecasts as a $1.2 TRILLION loss as run of the mill and of cycle moment. The duo will tell us that they want to restructure the system a little, but by and large everything is fine. The lack of regulation did not just happen, it was planned and deployed this way courtesy of Wall Street and decades of lobbying Republicans in Congress. For them, it all worked out fine. They pocketed billions, probably trillions on the backs of both normal people. A few casualties, sure, but after all, Bear Chairman Cayne still pocketed a very cushy $61 million this week.
Another important issue that needs to be addressed is why should we believe Paulson and Bush when they talk about oversight? This administration has never shown interest in oversight or regulation unless there is a woman’s nipple on TV. Obviously people have been calling for regulation of this wild west financial system for a while and they consistently ignored those calls. Even today, they want regulations to be mentioned, but not actually carried out because that might slow business down, so they say. Democrats have yet another opportunity to expose both the GOP and the administration on their weak response and failure to help out normal Americans. Will they seize the moment? We are in this situation because of specific GOP policy. Make them eat this dirt every day or expect the GOP to shed yet another of their failings and live another day.