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David Sirota Headshot

Obama Cites Bailed-Out Bank Donor as Reason to Back Bush Tax Cuts

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I just received a press release from the White House (you can see it here) citing a pro-tax cut memo from Morgan Stanley as reason for Congress to pass the Bush tax cuts on income over $250,000 a year. Let's step back and chronicle the steps that show just how audacious this really is.

  1. Morgan Stanley is one of the big financial firms that helps run the economy into the ground.
  2. Morgan Stanley becomes one of the top corporate campaign contributors to Barack Obama.
  3. Obama's Fed gives Morgan Stanley a 2 trillion bailout.*
  4. Nonetheless, Obama cites this same bailed out bank as a credible and objective source on the economy Morgan Stanley helped destroy - all in order to sell a tax plan that will benefit Morgan Stanley's executives in the form of new high-income tax cuts.

I think the "Which side are you on?" question about Obama has been answered.

* Note that the press release also cited another Obama bailout recipient, Barclay's.