The Rising Tide Of Online Opposition To Paulson's Plunder

Building on Monday's post about the scattered but telling signs of public opposition to Treasury Secretary Henry Paulson's $700 billion Wall Street bailout proposal--and the complete lack of organic online support for it, anywhere, here's an update on what was bubbling yesterday.

First, and most telling, is the entry of an infamous Internet meme, the FAIL sign, into yesterday's nationally televised congressional testimony by Paulson and Fed Chair Ben Bernanke. This picture, familiar to any of the millions of readers of the FAIL blog, should go down as an icon of our time, the moment when a user-generated online joke became a political protest slogan.

You can expect to see that one word, FAIL, at lots of street protests this Thursday.

That's the second big thing bubbling up online. Activists are spreading word of a big rally to be staged near Wall Street Thursday at 5pm. One email that was forwarded to me came from a group called "Picture the Homeless":

When poor and homeless people ask the government for help, they're told that low-income housing and living wage jobs are not a government priority because this country is built on "personal responsibility" and people need to "make better decisions."

When giant banking corporations are on the brink of total collapse because they have made a systematic series of bad business decisions - because they can - the government gives them a trillion dollars. The Administration even wants to include multi-million dollar "golden parachutes" for the corporate executives who MADE those bad decisions.

When a homeless mother and her children seek shelter from the City and are they turned away because "they have other housing resources" but have to sleep in the emergency room at Lincoln Hospital because they really don't, the City and the media paint her as abusing the system and their tough stance is spun as encouraging self-sufficiency.

Where is the "personal responsibility" for the rich? Why is democracy and freedom confused with the free market when we talk about the poor but the rich get State sponsored corporate bail outs and tax breaks?

Why is it that when WE demand health care, education, housing, and real jobs, the government is too cash-strapped to help out - but they've got trillions of dollars for unjust wars and corporate communism?"

Big Labor is also diving into the fight, working to activate millions of union members. The AFL-CIO sent an email out to its list, as did the SEIU. True Majority, along with several other progressive groups, is organizing companion rallies for Thursday at 5pm, the end of the work day.

People are clearly hungry for information on the proposed bailout, and news stories and commentaries questioning its terms are clearly in demand. The top emailed stories on the New York Times and Washington Post include oped columns titled "Cash for Trash" and "Calling Out the Culprits Who Caused the Crisis," and a story on retirees panicking as their nest eggs shrink. Yesterday, Vermont Senator Bernie Sanders got a huge jump in attention for his proposal to impose a 10% tax surcharge on the rich to pay for the bailout, according to Google Trends, which monitors searching patterns.

Perhaps the surest indicator of public sentiment online against the Paulson plan was the rapid spread of satirical emails and websites poking fun at it. An email purporting to be from Paulson read like one of those Nigerian email scams we all get in our inboxes: "Dear American," it started, "I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude. I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you....This transactin [sic] is 100% safe." And BuyMyShitPile.com, the first insta-site to pop up Monday, was getting more than 10,000 hits an hour by midday.

It remains to be seen whether all this online activity is about to turn into a massive wave of phone calls and faxes to Congressional offices. Those measures of offline protest are still the ones that matter most to Members. But if what's rumbling online is any indication, there's a lot of fury building in America at the size and speed of this bailout proposal, and Congress should pay attention, at its peril.

Comments

[derik]

As this starts to go from profound to profounder ... I shudder to think what the governed are wondering. I myself ended up learning computers and then ended up learning financial markets and economics in order to feel good. Anyhow, 30 years laters I still have my career in computers. As far as financial markets and economics, now I understand why I learned that. Funny thing, I still feel good. since I understand credit default swaps, the constititution and whatnot. As far as being filthy rich, well I guess I will keep plugging away in my computer career. After all, I have found that rebooting computers usually fixes things in the short run. Maybe, it is time to reboot the economy. Imagine how great it could be.

[ReElectNoOne]

Hmmm... I just got off the phone AGAIN with my mortgage broker GREENPOINT as a result of the fact that I have stopped making payments and am filing bankruptcy. I should have asked them if they had their hand out for public assistance and who should I call for a personal bail out of my own.

Why not let the Wall Street Rich twist in the breeze and wait. Send money to homeowners to buy their mortgages out...that will put the cash back in the lending industry while at the same time bailing out the real victims with the same money...We the People.

[Hope42]

I don't think the whole world is going to fall apart if this deal does not go through. Remember Paulson just cooked this idea up over a weekend and does not know if it will do anything. Some people think it will make matters WORSE.
Let's just take a deep breath here . If Congress puts more rules in place to PREVENT more of this from happening I think it will do just as much good in the long run. People will calm down and stocks will steady.
Some of these Ponzi schemes need to fail to make the economy healthy again.

Remember Paulson has been wrong every step of the way up till now. What makes him right now?

[USAFree1]

It was reported yesterday evening that the 3 Musketeers-Bush, Paulson and Bernake have been developing this plan for weeks and up to several months. What Congress needs to ask is why haven't been kept abreast of what's going on? Oh that's right; Congress just signs the contract. According to BushCo only the Prez is important and Congress is expected to fall in line. Keep on pushing folks. Make sure all of Congress-Dems and Repugs-know that payback is hell.

[caterpol]

It's too late for a good solution for taxpayers. When we allow a handful of huge corporations to control the economy, and expect them to police themselves without any oversight, without any regulations, this is what we get.

And for Paulson to even suggest that we give over $700 billion of blackmail money with no strings attached tells you how much Paulson cares about the little people.

[hoopesaz]

Fundamentally people do NOT unerstand what is happening. The failure of these organizations will affect EVERYONE. It's not just the rich who pay the price if the fall. It's the middle class, the rich, the poor, everyone.

I listened to Buffett speak on MSNBC. He claims that if the bailout doesn't go through, the results will be more fantastically bad than ANYTHING this country has ever seen. He has a pretty good track record and I tend to believe him.

People who seem to think that only the rich suffered through the great depression clearly don't know their history. Stupid unions protesting the bailout...if everything falls, they will be the VERY FIRST ONE'S to lose their jobs. Talk about clueless.

[ANewYear]

I'd be careful about putting too much into what Buffett says. He just got through investing $500 billion into Goldman Sachs. Conflict of interest anyone?

[sharpstyx]

5 billion, it was 5 billion and Goldman Sachs, isnt really an "at risk" bank at this point. They hold alot of questionable assets. It isnt a question of if this happens its when. The fed and tres, really cant dictate the ceo compensation issue because they are not bailing out the banks technically. When the took over Fre and Fnm and aig the fired all the execs and did away with severence packages, thats not what they are doing here. The fed/ tres want to create a buyer for questionable assets, this gives the holders capital which will free up the glut of crap that is slowing down the economy.

[UncommonSenz]

I agree hoop,

It is easy to say "I don't want any of my money going to the same wall street greedy bastards who caused this mess". I feel the same way.

HOWEVER, the cost of doing nothing is HUGE. Economist on the left and right are ALL terrified about how close we are to a collapse. And if our economy goes belly up, we will be in the beginning of a depression- which is something most of us have never had to live through.

Paulson's plan (give me the money and get out the way) was a joke. The Dem alternative is better, but there are no good options now- we have long since passed that point.

Either Congress gets a backbone, insist on some oversight and protection for consumers, or we do nothing. I think "why didn't they do something when they had the chance" will be the cry if they choose nothing.

[ANewYear]

Sorry, I meant a $5 billion investment by Buffett, not $500 billion.

[janinei]

I agree. There is going to be a bail out, that is the reality, because there has to be one of some sort. The thing that is important is to make sure that everyone benefits, from those who are seeing balloon payments to the people working hard every day. Sad as it is, these big companies keep the economy going and provide jobs. We live in an economy based on purchasing. Everyone wants the new t.v. cell phone etc. The country we chose is based on consumption. We would rather buy than save for the future in the bank. We want our money to make big money fast, we don't think long term. That is why we are in the situation we are in.

[DaisyDooks]

Which companies are we talking about? Are we talking about companies that are domestic or the ones that outsource their operations to other countries and get tax breaks? There should be a distinction. Save American jobs!

[lvdragonlady]

This pending disaster has already destoryed a lot of peoples IRA's and other retirement plans. The 700B is not going to correct this problem so why NOT let these businesses fail?
The damage would be a heck of alot less, in the long run, then being hit with higher taxes for the middle class because of this bail out.

or maybe if the bailout included EVERYONE who makes less the 200K a year, gets 100 shares for each of the companies that needs to be bailed out. Think about it, it is OUR tax dollars, what NOT give us shares in these companies?

[ron071]

HAVE THEY NO SHAME?

HAVE THEY NO DECENCY?

Bush and his cronies will be condemned by history as the most corrupt and inept administration in American history. That is the only justice they will receive.

[jcorrington]

Good post, Micah. However, I no longer have any faith in our congress to do the right thing. They have not supported the public's interests in a very long time.

[ewoman]

I called. I emailed. Both Republicans and Democrats, local and long-distance. I thanked them for their voice against this bailout and for their renewed strength in standing up for their constituents.

You can do it, too.

[ron071]

PAULSON , BERNANKE & THE GREATGREENSPAN-

THEY ARE RESPONSIBLE FOR THIS DEBACLE-

AND OUGHT TO PRVIDE THEIR MONEY FOR

ANY BAILOUT! Its a sham that they are now telling us to pay for their errors. Has the world turned upside down???????????????

[hoopesaz]

Make your case. Specifically, how are they responsible? My guess is you don't have clue...your just mad. Like the rest of us. But worse, your anger has made you irrational.

[hoopesaz]

As a consituent, the failure of the US economy is not in my interest. Things have to get back on track sufficiently that the country can turn from fire fighting to investigation and presecution of those responsible. If the economy blows up from lack of action, we all get prosecuted. No thanks.

[DuPageDem]

Here's a much better bailout plan: Nationalize the holdings of every CEO, CFO and 'regulator' who touched this mess, and use it pay off the upside-down margin on every mortgage in the country.

[hoopesaz]

So, what...that gets us maybe $5 billion or so? Then what?

[mgloraine]

Yes, this big wave of public opinion against the bailout will certainly be as effective as the big wave of public opinion against retroactive immunity for the telecoms, or public opposition to offshore drilling, or opposition to continued war funding, domestic spying, torture, attacking Iran, and everything else the American People are against, but Congress' corporate masters insist upon. Once our noble representatives have been adequately bribed by the lobbyists perpetrating the current swindle, then the corporatists get everything they can conceive of, again.

Since our votes have been effectively nullified by fixed voting machines, roll purges, voter caging, and partisan ownership of the "Supreme Court", our legislators feel confident that they can ignore their constituents completely, except when the threat of public backlash can be used to demand higher bribes from the lobbyists. Ordinary citizens don't have big wads of cash, cocaine, or prostitutes to provide to government officials in order to get their attention, so all of our internet fury is just the peasants grumbling amongst themselves.

[hoopesaz]

Or, perhaps, people don't have a clue of what the consequences are if the bailout doesn't go through. You can't manage your way out of a crisis via public opinion.

[christimarie]

Paulson spent the last eight years running over to China and selling out the American worker on every trip. He is a toadie for China as is George Bush and his entire administration. A country CAN NOT prosper when the industrial base is raped, pillaged, and destroyed. This is exactly what Paulson and Bush have been doing. We must throw out all the free (unfair) traders and take our country back for Americans. I hope the Democrats have a landslide in November. I was a Republican for 35+ years and finally realize how much I was lied to.

[Kindheart]

Thank you for being honest about what you have seen. This country has been ruined by Bush and his cronies. It is going to be very tough for Obama in the coming years trying to fix all the things that have been ruined over these past 8 years.

[ron071]

christimarie: I hope there are many other decent and truthful Republicans who realize how they have been conned by these charlatans. See the DuPageDem comment above. The guilty ones ought to pay the penalties including Paulson, Bernanke, Greenspan, Bush, & Cheney. THAT WOULD BE JUSTICE!

[Belisarius]

A bank bailout was the only solution proposed.

That does not make it the only solution or the right solution. It makes it the only solution the Bush admin wants us to look at.

How many times does this country need to be porked by bush and congress before it says enough is enough?

Write or call your representatives now!

Anybody that would propose section 8 of his bill is clearly the wrong man for this job. Fire Paulson now!

[noneIn2008]

The government breaks 90% of the things they touch. The 10% positive is very debatable, can you name one? Yet, we have another appeal for an emergency agreement. Congress won't even read the bills nor data - like Iraq. Congress is busy looking at polling data to decide which way to vote, instead of studying the situation.

Based upon history, odds are 90% probable that this will make things worse.

Then we also have the Big Two candidates are clamoring to have the government run more of the country in health, education, etc. The people won't learn until they collapse the entire system.

[TedB]

I'll give you three: police, fire protection and emergency medical services. I am not, however, trying to say that the bail-out would work.

[curledup]

FYI, I *did* call my Congressmen (Sens. Thune (R-SD) and Johnson (D-SD)) on Monday to state my encouragement that Section 8 of the proposed bailout legislation - the "no oversight" section" - not be allowed to pass as it stood. Ergo, the online unease with the bailout process has resulted in at least one citizen's action - I have *never* before called a national-level leader, although I have emailed. If I were in DC, I would have helped "FAIL" sign guy hold it up.