Here's more on Goldman Sachs's loss of memory about who caused the financial crisis. Their suggestion for a recovery is to cut entitlements which had no bearing on causing the financial crisis. It must be great to suffer from memory loss over fraudulent behavior but still have full cognitive function for instructing the Congress and the President to eliminate the entitlements of the poor and the old.
Who Really Crashed the Economy?
By Dean Baker - Counterpunch
. . . .In a sane world we might be looking to square the deck with the folks who brought us the bubble. One obvious way would be a modest financial speculation tax like the one that the UK has had in effect on stock transfers for centuries. A modest tax on trades of stock, options, credit default swaps and other derivative instruments could raise enormous amounts of money while barely affecting normal investors.
The Joint Tax Committee estimated that a 0.03 percent speculation tax proposed by Sen. Tom Harkin and Rep. Peter Defazio would raise almost $40 billion a year. This bill would imply a tax of just $3 on $10,000 of trades. Since computerization has caused trading costs to plummet, this tax would just raise transactions costs back to where they were 10-15 years ago.
The big hit would be on the high speed traders and other fast turnover types who are flipping stock and other assets by the hour or even by the second. This trading is a drain on the economy and cutting it back would free up resources for productive activity.
But in Washington policy circles, taxing Wall Street is off the agenda, cutting Social Security and Medicare is on the agenda. And, best of all, many of the people at the center of the housing crash are playing leading roles in this drive to cut retirees benefits.
Last week, many people might have seen Lloyd Blankfein, the CEO of Goldman Sachs, talking about the need to cut Social Security benefits and raise the retirement age. The last time that Mr. Blankfein was very visible in policy debates he was desperately seeking a bailout for Goldman Sachs which was facing a bank run that pushed the company to the edge of bankruptcy.
It was granted special protection from the Federal Reserve Board and the Federal Deposit Insurance Corporation. This protection, coupled with tens of billions of dollars in loans at below market interest rates allowed Goldman Sachs to regain its health. Now its CEO wants to cut our Social Security.
Read the entire article here