Bankers Blink at Paulson's Unprecedented Power, Shock and Awe; So Should We!

Paulson wields extraordinary power. We all need to think about what further uses it can or may be put to and consider its use and abuse and the Good and Evil We May Soon Face.

Today's Wall Street Journal reports how Henry Paulson summoned the heads of the top banks in America to meet with him on Monday.

On one side of the table sat Treasury Secretary Henry Paulson, flanked by Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair.

On the other side sat the nation's top bank executives, who had flown in from around the country, lined up in alphabetical order by bank, with Bank of America Corp. at one end of the table and Wells Fargo & Co. at another.

It was Monday afternoon at 3 p.m. at the Treasury headquarters. Messrs. Paulson and Bernanke had called one of the most important gatherings of bankers in American history...

Hank Paulson and Ben Bernanke gave this collection of oligarchs a lecture, for an hour, painting a "dire portrait of the U.S. economy and the unfolding financial crisis."

Then Paulson gave them an offer they couldn't refuse -- the US was going to buy billions of dollars worth of shares of their companies. Paulson handed each of them a term sheet that dictated how the government would be dealing with their companies, how the government would define how executive pay and dividend policies would be set.

They agreed, signed the contract, bought the deal-- no dickering, no negotiations. Talk about shock and awe.

This is a very important lesson for the incoming President and congress-- the power that can be wielded, without congressional approval-- to affect the most basic, core operations, philosophies and functions of our economy, our national infrastructure.

Imagine if this kind of huge power, thinking and action was applied to global warming, poverty, universal single healthcare, social justice. In the swipe of a pen a lot of goodness could be accomplished. Corporate polluters could be summoned to the table, handed documents defining the steps they would be taking to clean up their acts. Health care corporations could be instructed to cut executive pay to no more than ten times the highest salary. On the government side, how about instituting a tax of corporate executives and people profiting from sales of investment products-- stocks, derivatives, bonds, etc.-- that is comparable to to time of Roosevelt-- 91% for more than, say, $20 million dollars?

But also, imagine what may lay in store for us in these final days of the Bushadministration. Paulson exercised this power with the authorization and fiat of Bush and the congress. There is SO much potential for this degree of power to make a great difference, but I fear it is also frightening to contemplate what Bush and Cheney, as they too realize what's just been done, start planning their last days of decrees, pardons, crimes, corruptions and thefts.

Funny thing. Just a day or two ago, I was telling an impeachment activist that now is not the time to push for impeachment. But damn, when I think of the damage the criminals in the White House still have the power and potential to do, I take it back. Come November 5th, when the election is over, Congress has an obligation to protect us from the final days of Bush and Cheney. It's never been about holding a trial in the Senate. The house must bring up enough dirt to force the Republicans in the Senate to insist that Bush and Cheney resign and the Democrats must agree to allow the Republicans to appoint historic replacements -- for the short term-- a woman, a Latino or African American -- maybe even Condeleeza Rice-- since it's for such a short term, or Kay Bailey Hutchison. Or go with someone who will never run or president, who's a moderate, like John Warner or Arlen Specter. Give the GOP a chance to do some good and start the healing, and appoint someone who will allow the winner of the election to start appointing replacements immediately, or even better, perhaps best, allow the new president to take office a few months early. America needs this.

Of course, if Obama wins, we can expect a horrendous battle as McCain appeals every close state -- you know, the kind of thing that Gore and Kerry should have engaged in.

crossposted from OpEdNews.com

Follow Rob Kall on Twitter: www.twitter.com/robkall

Comments

[Yermammy]

Finally. I've been screaming this at the top of my lungs. Are people finally going to wake up? Don't look for Nancy to help out. She's just as guilty as Bush & Cheney. John Conyer's needs to go ahead without Her consent, by impeaching Her, for not impeaching them!

[JBS]

"Of course, if Obama wins, we can expect a horrendous battle ..."

Or perhaps, Bush will invoke NPSD-51 and "save" us.

[proreality]

When Roosevelt was elected the presidential inauguration was in March, do to Hoover's complete failure the legislature voted to let him be inaugurated in January, this later became part of the 27th amendment along with the two term limit on the presidency. The question is wether it would take a 2/3 vote to allow the next president to take office early and would it be a one time exception or be used in the future to facilitate the installation of an unlawfully elected candidate. Remember in 2000 the Florida debacle went on until December if something like that happened in the future it would have much less time to be resolved.

[benjaminblue]

"Come November 5th, when the election is over, Congress has an obligation to protect us from the final days of Bush and Cheney."

This is the best solution to not only the current economic strife but to many of the potential ills this country faces in the next few years.

There is no choice. Mr. Bush and Mr. Cheney must be punished to the maximum degree for the evil, illegal actions they have engaged in over the last eight years. If they are not held accountable, the next leader, or the next, will be tempted to go even further into the dark side.

Congress must take its Constitutional duty seriously. It must not hesitate a moment beyond the election -- no matter who is elected -- to end the insanity of this administration.

[Fez]

If the Democrats win the White House and control of both houses of Congress, expect Bush and Cheney to make one last attempt to finish shredding the Constitution, gutting regulatory agencies, and robbing the treasury. Democrats at that point would have nothing to lose by refusing to act on ANY of Bush's proposals. Unfortunately, most of the damage done by Bush in the last year of his occupation will be through regulatory actions at EPA, DOI, and HHS. Beginning November 5th Democrats need to show Bush what a lame duck truly is... a washed up crook with no power, no crdibility, no friends, and no soul.