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Tag(s): Bailout; Deregulation; Interviews; Paulson; Rob Kall Radio; Rob Kall Radio Show; Sanders-Bernie
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September 30, 2008 at 12:02:49

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Promoted to Headline (H3) on 9/30/08:
Interview With Senator Bernie Sanders on The Bailout

by Rob Kall Page 1 of 5 page(s)

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Thanks for the invaluable volunteer help of Jay Farrington in transcribing the interview.

Kall: So, I'm so glad you could be with us speaking to the Philadelphia area. You're really doing a great job standing up in this conversation and I figure I'm let you talk to the audience and tell them what you want to—make sure you get after them, and then we can have a conversation if there's some time after that.

Sanders: Sure, well, my main concern is that, since President Bush has been in office, what we have seen is a significant decline in the standard of living of the middle class; people's median income's gone down; Six million have slipped out of the middle class and into poverty; seven million people have lost their health insurance; the gap between the very rich and everybody else has gone wild;

Meanwhile, while the middleclass is slipping, the people on top have done extraordinarily well: you have the incredible reality that the top 400 individuals in this country have seen a 670 Billion dollar, that's a B, Billion dollar increase in their wealth since Bush has been president. So when I look at this proposed bailout, the first question that comes to my mind is, "Who's going to pay for this thing?

Given the disastrous impact that Bush's policies have had on the middle class, why should it be the middle class that really has to bail out the excesses of Wall Street, when those guys have done very, very well.

So, my main concern right now is to make sure that this bailout is paid for by those people who have benefited out of Bush's policies. There is the top .01%, who now earn more in income, by the way, than the bottom 50% so, that's my first concern.

My second concern is if we go forward in this proposal, that we make certain that the assets purchased for banks are realistically discounted; in other words, taxpayers of the country don't pay more for assets than they should and I also want to make sure that when taxpayers put money into an asset that in fact, we end up receiving equity stakes in the bailed out companies. If we're going to put up the money we need to own a percentage of those companies.

The other concerns that I have, Rob, are that we have to understand how we got into this precipitous, this very dangerous situation and that has a lot to do with the deregulation that we have seen for the last many years.

I voted while I was in the House (I was on the Banking Committee there) against the Gramm Leach Blithely legislation, which took down the firewalls that had been established since the Great Depression and I think that is one of the precipitating factors that leads us to where we are today.

Also, when we see the tremendous volatility in oil prices, we understand, I believe, anyhow, that there is a great deal of speculation going on there as well. So, what we need to do is do sensible re-regulation; I think we have, if we've learned anything in this crisis, it is that we cannot trust these major financial institutions to do the right thing in terms of protecting consumers. Nor will people who are purchasing oil futures show any concern for people who have to pay $3.70 for a gallon of gas.

So I think the function of government is in fact to protect consumers, protect workers. We have let those principles slide very significantly in recent years on these right wing economic principles which include not only deregulation, but tax breaks for billionaires under the great "trickle down" theory that somehow we all benefit when billionaires get tax breaks and also unfettered free trade—somehow it's going to work wonders for the middle class while we allow companies to throw America workers out on the street, move to China and then bring their products back tariff free so that's an important part of what I want to see done; I think sensible re-regulation is important and the other thing; a couple of other things that are important to me.

This is not being talked about is the reason we are where we are today is because you have institutions that are too big to fail, and they have to be bailed out because if they fail, they're going to take down a significant part of the economy with them. I believe, and it seems to me pretty commonsensical, that if an institution is too big to fail, then it is too big to exist.

Kall: Boy, do I agree with that…

Sanders: But you're not hearing much discussion; let me give you an example and then I'll give it all over to you; right now, which is in the last few weeks, Bank of America which is the nation's largest depository institution has taken over Country Wide, which is the nation's largest mortgage lender and they've absorbed Merrill Lynch, the nation's largest brokerage house. Now you tell me what happens in five years if Bank of America teeters, do you have a doubt for a second that they're going to have to be bailed out?

Kall: Absolutely, that's what's going to happen; in your petition (here) you say not only that they're too big to exist, but we need to determine which companies fall into this category and then break them up?

Sanders: Right.

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Rob Kall is executive editor and publisher of OpEdNews.com, President of Futurehealth, Inc, inventor . He is also published regularly on the Huffingtonpost.com and is a columnist with Northstarwriters.com. He is a frequent Speaker on Politics, Impeachment, The art, science and power of story, heroes and the hero's journey, Positive Psychology, Stress, Biofeedback and a wide range of subjects. He is a campaign consultant specializing in tapping the power of stories for issue positioning, stump speeches and debates. He recently retired as organizer of several conferences, including StoryCon, the Summit Meeting on the Art, Science and Application of Story and The Winter Brain Meeting on neurofeedback, biofeedback, Optimal Functioning and Positive Psychology. See more of his articles here and, older ones, here.

To learn more about me and OpEdNews.com, check out this article.

and there are Rob's quotes, here. To Watch me on youtube, having a lively conversation with John Conyers, Chair of the House Judiciary committee, click here Now, wouldn't you like to see me on the political news shows, representing progressives. If so, tell your favorite shows to bring me on and refer them to this youtube video

My radio show, The Rob Kall Show, runs 9-10 PM EST Wednesday evenings, on AM 1360, WNJC and is archived on www.whiterosesociety.org Or listen to it streaming, live at either www.wnjc1360.com or here.

Or check the archived interviews at: whiterosesociety.org

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A few declarations. -While I'm registered as a Democrat, I consider myself to be a dynamic critic of the Democratic party, just as, well, not quite as much, but almost as much as I am a critic of republicans. -My articles express my personal opinion, not the opinion of this website.

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6 comments

I am a college graduate, a loyal patriot of the Constitution and Bill of Rights, a person whose convictions and pessimism drive my thought invoking others to think, and enjoy some politcal debate. I like truth even if it doesn't set you "free" in this US of A any longer. I am a liberal.
I do a bit of painting mostly in Acrylic. I do a bit of poetry writng mostly inspired by tragic thought. I do a ton of reading, mostly online. I speak straightforwardly and don't plan on changing. It's wor...

to see more of bio, click on member name
shirley reeseI am a college graduate, a loyal patriot of the Constitution and Bill of Rights, a person whose convictions and pessimism drive my thought invoking others to think, and enjoy some politcal debate. I like truth even if it doesn't set you "free" in this US of A any longer. I am a liberal.
I do a bit of painting mostly in Acrylic. I do a bit of poetry writng mostly inspired by tragic thought. I do a ton of reading, mostly online. I speak straightforwardly and don't plan on changing. It's wor...

to see more of bio, click on member name

Excellent work, Rob

Bernie is Independent, correct? I like hearing him on the floor. He is a Bright and charming man.

This interview just smacks of everything I hope for and dream of for our people, our Nation. USA just doesn't feel the same anymore and in the words of my favorite Actress, "there's no place like home". Dang, where are my red slippers.

I love the info on the community healthcare. Inexpensive, covers everyone for prevention and illness...gosh, the only ones it hurts is BIG FAT CORPORATE INSURANCE AND BIG FAT PHARMA. Pitysakes,,,,not.

by shirley reese (0 articles, 0 quicklinks, 0 diaries, 433 comments) on Tuesday, September 30, 2008 at 7:15:34 PM

I'm a 29 year old male.
TyI'm a 29 year old male.

Bernie Sanders

Bernie Sanders needs to be fired for voting to spend billions on occupying Iraq and Afghanistan.

by Ty (0 articles, 0 quicklinks, 0 diaries, 888 comments) on Wednesday, October 1, 2008 at 12:11:13 AM

Just an ordinary nobody who's glad he took typing in 9th grade.
Alan WilliamsJust an ordinary nobody who's glad he took typing in 9th grade.

Sanders' wrongheadedness

"What we do know is that it's the result of the sub prime mortgage crisis; one large inst after another is--we have seen a number of them folding already and others are in danger of folding so the issue now is, according to Bernake and according to Paulson, if the congress does not act in the very near future, very short term, they worry very much about a financial meltdown. --- Bernie Sanders

But why the problem in the first case, Bernie? Could it perhaps be because of too MUCH "acting", pushed by Democrats, that has essentially REQUIRED the financial sector to behave the way they have -- giving loans to people who wouldn't and shouldn't have otherwise been given them, minus the attempt at social engineering by "progressives"?:

"Obama, who once represented ACORN in a lawsuit against the state of Illinois, was hired by the group to train its community organizers and staff in the methods and tactics of the late Saul Alinsky. ACORN would stage in-your-face protests in bank lobbies, drive-through lanes and even at bank managers' homes to get them to issue risky loans in the inner city or face charges of racism."

Time and time again during the last 20 years or so, "progressives" have been pushing for unwise lending practices in the name of "fairness". And time and time again, Bush and the Republicans and McCain no less have tried to warn them about the folly and danger of doing so.

Now, the socialist Sanders, Democrats and the Democrat-dominated media try to rewrite history in an attempt to cover up the misdeeds and wrongheadedness of socialism.

Priceless.

by Alan Williams (0 articles, 0 quicklinks, 0 diaries, 776 comments) on Wednesday, October 1, 2008 at 1:08:50 AM

Eric Nelson is freelance writer, an editor at OpEdNews, and a spiritual progressive from Minnesota who has become more politically active. The reasons for this should be obvious to most; rising poverty, a broken health care system, and a growing global environmental crisis. Eric's writings are as "fair and balanced" as those of FOX news. Eric is also a web informatics expert.
E. NelsonEric Nelson is freelance writer, an editor at OpEdNews, and a spiritual progressive from Minnesota who has become more politically active. The reasons for this should be obvious to most; rising poverty, a broken health care system, and a growing global environmental crisis. Eric's writings are as "fair and balanced" as those of FOX news. Eric is also a web informatics expert.

Here come the Republican talking points

Nice Try Alan. We both know you got your info from Rush Limbaugh. I have heard the same ridiculous talking points on his radio show lately. This blaming the CRA has become the political strawman for the right. Rush and the right-wing neonuts have been on a mission to place the blame on Fannie May and Freddie Mac and then further make the link to Obama because of his ties to Fannie and Freddie and the CRA. The CRA is now being blamed and all the poor people that this piece of legislation tried to help. It is a little sad in my opinion to hear that the Republican talking point is to now blame poor people. It is the poor people who got into bad mortgages and that we should feel sorry for Wall Street for being suckered into giving mortgages to these poor people. What they again don't say is how much money was being made selling these mortgages, the blatant alterations of people's credit scores to get loans approved, and then the repeated selling, packaging, derivatizing of all these loans many times over. The CRA act did not force banks to make subprime loans. Banks choose to make subprime loans in many of these cases because it was more lucrative for them to do so. And even with this the data on the CRA's also shows that they are responsible for only 25% of all the sub-prime loans that have been underwritten.

In terms of Fannie and Freddie I am sure Rush neglected to tell you that Rick Davis, McCain's campaign manager received $2 million in lobbying fees from Fannie and Freddie. [reference]

Lobbying firm of Charlie Black, one of McCain's top aides, made at least $820,000 working for Freddie Mac from 1999 to 2004. The McCain campaign's vice-chair Wayne Berman and its congressional liaison John Green made $1.14 million working on behalf of Fannie Mae for lobbying firm Ogilvy Government Relations. Green made an additional $180,000 from Freddie Mac. Arther B. Culvahouse Jr., the VP vetter who helped John McCain select Sarah Palin, earned $80,000 from Fannie Mae in 2003 and 2004, while working for lobbying and law firm O'Melveny & Myers LLP. In addition, Politico reports that at least 20 McCain fundraisers have lobbied for Fannie Mae and Freddie Mac, pocketing at least $12.3 million over the last nine years. [reference]

by E. Nelson (28 articles, 5 quicklinks, 25 diaries, 335 comments) on Wednesday, October 1, 2008 at 2:25:03 AM

"Liberty cannot be preserved without a general knowledge among the people, who have a right, an indisputable, unalienable, indefeasible, divine right to that most dreaded and envied kind of knowledge, I mean the characters and conduct of their rulers."

~John Adams~
Tippy Canoe"Liberty cannot be preserved without a general knowledge among the people, who have a right, an indisputable, unalienable, indefeasible, divine right to that most dreaded and envied kind of knowledge, I mean the characters and conduct of their rulers."

~John Adams~

Don't stop there...

Don't stop there E. Nelson. Please elaborate on Obama being the second largest recipient of Fannie/Freddie campaign contributions. Love to hear your take on this.

If you want to hear a Republican talking point on the Fannie/Fredie debacle, I suggest you go all the way back to the Sept. 10th 2003 House Financial Services Committee meeting and read this statement.

What most folks don't understand, over the long term, is the Federal Reserve's role in all of this since the '87 crash due to their stated inflation/deflation of the dollar, low interest rate & credit policies.

And E., as an INDEPENDENT voter, I realize that lumping all Republicans in the same pot is just about as silly as lumping all the Dems together. It is intellectually lazy and a patently false premise.

(And before you peg me as a "free market advocate", let's try to understand that there can be no truly free market when you have a fiat currency who's value can be manipulated at will. Wouldn't that be the antithesis of a free market?)

by Tippy Canoe (0 articles, 0 quicklinks, 1 diaries, 28 comments) on Wednesday, October 1, 2008 at 7:33:15 AM

A writer is a rogue goose. All other gees fly in a flock formation; every goose knows his place and time for honking. The rogue goose is undisciplined. He leaves the formation indiscriminately to have a look at it from aside. He roams back and forth, takes a peep at the leader, honks a little bit from behind, distracts everyone and writes on what he sees. Time passes and as he wants to return back to his place he discovers someone else there. Thus he either has to wait until they land for rest...

to see more of bio, click on member name
Mark SashineA writer is a rogue goose. All other gees fly in a flock formation; every goose knows his place and time for honking. The rogue goose is undisciplined. He leaves the formation indiscriminately to have a look at it from aside. He roams back and forth, takes a peep at the leader, honks a little bit from behind, distracts everyone and writes on what he sees. Time passes and as he wants to return back to his place he discovers someone else there. Thus he either has to wait until they land for rest...

to see more of bio, click on member name

Leverage

In all normal countries which have NATIONAL policy in case of the credit crunch the govt simply announces that it becomes a co-signer on the group of most significant loans on a case- by-case basis as well as introduces a competitior- a govt- run loan company for businesses, in fact guaranteing the credit solvency of the national private sector by the people's power. That's of course is coinciding with such steps as LOWERING of the military spending and stopping wars. Obviously no normal govt just succummbs to the blackmail like our does.

Go figure

by Mark Sashine (55 articles, 19 quicklinks, 256 diaries, 3705 comments) on Wednesday, October 1, 2008 at 10:11:33 AM

6 comments

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