bogus panic

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William Greider's "The Credit-Rating Hoax" (The Nation) opens with a well-directed salvo:

Standard & Poor's, the self-righteous credit-rating agency, has a damn lot of nerve. It provoked scary headlines by solemnly threatening to "short" America. That is, downgrade the credit-worthiness of US Treasury bonds unless Congress and the president oblige creditors by punishing the citizenry with severe budget cuts. What a load of crap.

Greider calls S&P "an unindicted co-conspirator [that] blessed the fraud-based mortgage securities issued by Wall Street banks with AAA ratings [and] provided cover for the massive scam that led to the crisis that sank the national economy." Furthermore, he writes, panic over the deficit is "bogus" excuse to "avoid raising taxes on the folks who got the money:"

Naturally, this reactionary approach was first promoted by Republicans, but has been tacitly embraced by the Democratic president and Congressional Democrats. No more talk from them about jobs, jobs, jobs or doing anything real to save millions of families from home foreclosures.

Although he notes that populist tax-the-rich movements are "dismissed as uninformed or self-indulgent," Greider concludes by observing that "the one thing that can save the country from the respectable wrath of Standard & Poor's is the wrath of angry, mobilized citizens."

We've seen plenty of angry and mobilized citizens (although they are often quite confused) over the past few years, but we need something less common: an informed citizenry. Media misinformation won't help us get there.

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This page contains a single entry by cognitivedissident published on April 22, 2011 3:06 PM.

fiscal sanity in the asylum was the previous entry in this blog.

letter from Hitchens is the next entry in this blog.

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