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Today's Stories March 26, 2008 Sharon Smith Greed Pays March 25, 2008 Ishmael Reed The Crazy Rev. Wright Corey D. B. Walker The Politics of Jeremiah Wright Linn Washington Jr. Racism in America and Other Uncomfortable Facts Alan Farago The Money Launderers: a Picnic for Wall St. Insiders Vijay Prashad A Glimmer of Hope From the Gulf Coast Joshua Frank A Silver Lining to the Bush Years? Ralph Nader How Public Servants Can Help End This War David Rovics If I Can't Dance: Why is the Left So Boring? Peter Morici America's Banks are Broken Dave Zirin Olympic Flames: China's Crackdown in Tibet David Krieger The Crisis in Tibet Website of the Day Memorializing Iraq March 24, 2008 Jeffrey St. Clair Blonde Ambition: Hillary's Berserker Campaign for 2012 Peter Morici Digging Out of the Recession Uri Avnery Two Americas Wajahat Ali First of the Mohicans: an Interview with Rep. Keith Ellison Paul Craig Roberts Inside the Shell Game George Ciccariello-Maher The Coming War on Venezuela Stephen Lendman Sami Al-Arian's Long Ordeal Christopher Brauchli Possessing Someone Else's Country Cat Woods A Letter to Mom on Obama Stacey Warde Tax Burden Dave Lindorff The American Dead Hits 4,000, But Who's Counting? Website of the Day Live from the Longest Walk   March 22 / 23, 2008 Ralph Nader Bush Blisters the Truth on Iraq Nicole Colson Can You Afford to Feed Your Family? James Petras The Cost of Unilateral Humanitarian Initiatives Laura Carlsen From Bombs to Markets: The Andean Crisis and the Geopolitics of Trade Greg Moses Tolerance and the American Pulpit Andy Worthington Torture Stories Dog Guantánamo Trials Michael Dickinson Art on Trial John Ross Bush's Surge Hits Mosul Missy Comley Beattie Killer Economics David Michael Green Happy Anniversary, America! Ramzy Baroud The Coming Uncertain War on Iran Martha Rosenberg Easter Egg Shells from Hell Paul Watson Evolution is Going to the Dogs in the Galapagos Isabella Kenfield Monsanto's Raid on Brazil James Murren Logging v. Water in Honduras Jacob Hornberger Sex and the Immigration Officer Kathlyn Stone Ben Heine, Master of the Art of Resistance Seth Sandronsky Rethinking New Mexico's History Kim Nicolini Class, Gender and Abortion in Communist Romania Jeffrey St. Clair Booked Up: What I'm Reading This Week Poets' Basement Wilson, Woods, Gibbons and Orloski Website of the Weekend Merci, McCain!   March 21, 2008 Marleen Martin Land Behind Bars: the Hidden Casualties of America's "War on Crime" Peter Montague Run Your Car on Coal? Maybe Not Saul Landau Monroe's Deadly Doctrine Anis Hamadeh Merkel in the Knesset Jacob Hornberger McCain's Al Qaeda Scare: Slip or Tactic? Khalil Nakhleh Al Nakba of 1948: How Long Will It Persist? Adam Isacson Colombia, Paramilitary Threats and Assassinations Kenneth Couesbouc Money for Nothing Madis Senner Will the Feds Underwrite the Stock Market? Monica Benderman The Costs of Freedom: What Are You Willing to Pay? Website of the Day Stop Foreclosures and Evictions March 20, 2008 Damien Millet / Eric Toussaint The Triple Failing of the Big Private Banks Mike Whitney Winding Up Bear John Ross What Do We Owe Iraq? Dave Lindorff Paying the Piper: the Bodies and Bills are Piling Up Wajahat Ali Pakistan on Fire Jill Nagle Memo to Sex Workers: Stop Financing Shock Journalism Manuel Garcia, Jr. Obama and the Psychic Auto-Shrink-Wrapping Called Race in America Dan La Botz Obama's Race Speech Robert Weissman Alternative Power: Shutting Down the API Stella Dallas / Jennifer Matsui Apostasy Now! Mamet, Enter Stage Right Website of the Day The Angry Monk   March 19, 2008 Patrick Cockburn A War of Lies Robert Fisk The Little Men and the Inferno Jeff Taylor Five Years of War in Iraq Ed Ruggero From Pinkville to Iraq: the Dark Anniversary of My Lai Ron Jacobs Who'll Stop the Rain? Christopher Fons Obama Takes the Race Bait Sherwood Ross In Defense of Rev. Wright Cynthia McKinney An Urgent Crisis: Confronting America's Racial Disparities Joshua Frank The Kool-Aid That Kills Robert Weissman Monsanto's Genetic Food Gamble Walter Brasch It's a Welfare State--If You're Rich Yifat Susskind Iraqi Women Resist the Occupation Andrew Wimmer War Demands Its Due Website of the Day Glimpses of Nature   March 18, 2008 David Price The Military "Leveraging" of Cultural Knowledge Paul Craig Roberts The Collapse of American Power Tim Wise Of National Lies and Racial America: Jeremiah Wright, Barack Obama and the Unacceptability of Truth Patrick Cockburn One of the Most Disastrous Wars Ever Fought Conn Hallinan Afghanistan, a River Running Backward James T. Phillips Monsters: Past, Present and Wannabe Uri Avnery The Killing in Bethlehem David Macaray Could Wal-Mart Revive the Labor Movement? Marjorie Cohn Beware an Attack on Iran Peter Zinn Obama in New Orleans Dan La Botz The Economic Crisis, Labor and the Left Monica Benderman Where are We Going?   March 17, 2008 Pam Martens The Fed's Wall Street Dilemma Sasan Fayazmanesh The US, Iran and the Policy of Dual Containment Nelson P. Valdés The Imperial Branding of Simon Bolivar and the Cuban Revolution Peter Morici The Corrosive Consequences of the Trade Deficit Wajahat Ali Disrobing the Nine: a Conversation with Jeffrey Toobin on the Supreme Court Since 9/11 Ronnie Cummins Beyond Progressive Malpractice: Taking Down Big Pharma Shaun Harkin Saint Patrick's Day in Fortress America Ali Khan No Pardon for Musharraf Robert Jensen Beyond Peace P. Sainath Oh, What a Lovely Waiver! Greg Moses Jeremiah was a Bullhorn Dr. Susan Block Advice for Eliot Spitzer Website of the Day No Cowboys   March 15 / 16, 2008 Patrick Cockburn How to Destroy a Country in Five Years Mike Whitney Bearly Alive: Investment Giant Rushed to ICU by Panicky Fed Chief Ralph Nader Of Laws and Men Robert Pollin It's Still the Economy, Stupid Diane Christian The Poetics of Perversity: From Boccaccio to Spitzer Wajahat Ali Faking the Hood: a Conversation with Ishmael Reed Tom Wright / Therese Saliba Rachel Corrie's Case for Justice Alan Farago Back to Florida: Where Bushtime Began Greg Moses Raiding the Family Room in Texas Michael Hudson A Grand Global Bargain? Martha Rosenberg Why Hillary's Favorite Chicken Company is Eying China John Goekler Fourth Generation Warfare in a Fifth Generation Conflict Uzma Aslam Khan A Letter to Barack Obama: Where's the Change, Barack? Oren Ben-Dor The Silencing of Gilad Atzmon David Underhill Mammon, Morals and the Mobile Tanker Deal Fred Gardner The Education of Eliot Spitzer David Michael Green Why Spitzer Should Have Resigned (and Why He Shouldn't Have) Rev. William E. Alberts Jesus, Entombed in Heaven Gail Dines It's All About the John: Prostitution and Male Power David Yearsley Conducting, Anarchy and the Problem of When to Begin Chris Clarke Walking with Zeke: the Luckiest of Dogs Poets' Basement Anderson, Lodge & Subiet Website of the Day Deviant Art   March 14, 2008 Paul Craig Roberts Watching the Dollar Die Don Santina Vichy Democrats: Pelosi and the Politics of Collaboration Patrick Cockburn Iraqi Mother Vows Revenge on US: How She Lost Her Husband and Her Sons Tim Rinne StratCom Rules! The Next War Will Start in Nebraska Robert Fantina In Torture We Trust Saul Landau Letter to the Presidents-in-Waitings David Macaray Common Myths About Labor Unions Franklin Lamb Is the Bush Administration Switching Horses in Lebanon Michael Neumann The One State Illusion: Reply to My Critics March 13, 2008 Paul Craig Roberts Republicans and "Free Market" Zealots Bring Disaster to America Mike Whitney Meltdown Looms Larger As Credit Markets Freeze Assaf Kfoury "One-State or Two State?"- Sterile Debate on False Alternatives Andy Worthington Afghan Hero Who Died in Guantánamo: The Background to the Story Adam Federman From Autopia to Autogeddon: Cars Reach the End of the Road March 12, 2008 Dave Lindorff Bringing Down Spitzer: It's the Big Brother Who Should Bother US R.F. Blader The Spitzer Backlash Yonatan Mendel How to be an Israeli Journalist. Never Write "Murder" or "Palestine" Jonathan Cook One State or Two? Neither. The Issue is Zionism Bill and Kathy Christison Fallon and Gates -- At Least One Cheer James J. Brittain Was the U.S. Involved in Killing the FARC-EP Leaders Ron Jacobs "All the Money You Make Will Never Buy Back Your Soul" March 11, 2008 Paul Craig Roberts How to End the Subprime Crisis Ed O'Loughlin How Israeli Troops Invade Homes in Gaza, Brutalize, Smash and Steal Ramzy Baroud 'Unwavering Commitment' to Inequality Kathy Christison One State or Two? The Debate Over Israel and Palestine China Hand PRC Plays it Cool, as U.S. Tries to Amp Up Pressure on Iran John Joslin Thank You, Nafta! Welcome to Weirton, Home of the Discount Cigarette Mike Averko Serb Politics, Kosovo and the Moscow-Washington Divide Ben Rosenfeld Gavin Newsom's Kneejerk Plan Thierry Paquot High Rise, Low Spirits:The Curse of the Tower Block March 10, 2008 Uri Avnery "Kill A Hundred Turks and Rest": The Five-Day War in Gaza Col. Dan Smith Scoring the "Surge" and What Lies Beyond R.F. Blader Why "Lock Them Up and Throw Away the Key" is Losing its Sheen Michael Neumann The One-State Illusion: More is Less Bob Fitrakis and Harvey Wasserman Did the Republicans Give Hillary Her Victory in Ohio? James J. Brittain Anti-Uribe Protests in Colombia and the World Missy Comley Beattie The Passion of John McCain March 8-9, 2008 Weekend Edition JoAnn Wypijewski The Only Way to Fight the Clintons Mike Whitney Sorting Through the Rubble in Post Bubble America Peter Morici Fed and Treasury Fiddle as Economy Plummets Ralph Nader The Silent Violence of Gaza's Suffering that Candidates Ignore Jonathan Cook The Meaning of Gaza's Shoah Steve Niva Behind the Israeli Escalation in Gaza Bill and Kathy Christison Crisis over Teheran's Alleged Nuclear Plans Nearing Climax Hervé Do Alto and Franck Poupeau Bolivia: Morales is Checked Eric Walberg To Leave and Stay at the Same Time: Putin to Medvedev to…? Scott Johnson City of A Thousand Foreclosures Mark Scaramella James Brown's Gate Bill Clinton President Clinton's Remarks on Naming William M. Daley as NAFTA Task Force Chairman Poet's Basement St. Thomasino, Engel, Davies and Willson Website of the Weekend Hillary Blackens Barack March 7, 2008 Patrick Cockburn Why Iraq Could Blow-Up in John McCain's Face Robin Blackburn Question for Barrack Obama: Why Afghanistan is the'Right War'? Saul Landau The Stupid Economy Binoy Kampmark When Competition is Good: McCain and the Muddled Democrats Chris Floyd Crushing the Ants: Admiral Fallon and His Empire Andy Worthington Spanish Drop "Inhuman" Extradition Request for Guantánamo Britons Will Potter Before the Smoke Even Clears in Seattle: Bringing Out the T Word March 6, 2008   March 6, 2008 Vincent Navarro The Next Failure of Health Reform Forrest Hylton High Stakes in the Andes: Colombia's Cornered President Peter Morici Why the Dollar is So Cheap George Ciccariello-Maher Counter-Attack of the Bureaucrats John Ross Taxi! Taxi! The Dark Side of the Oscars Jacob Hornberger No Standing to Lecture on Justice Paul Watson Illegal Japanese Whaling by the Numbers Dan Bacher Off the Deep End Website of the Day A Katrina Reader Online   March 5, 2008 Cockburn / St. Clair A Great Day for John McCain (and Maybe Nader) Joanne Mariner After Guantanamo Fidel Castro The Raid on Ecuador: Underestimating Rafael Correa Christopher Brauchli The Turkish Invasions Steven Sherman Obama and the Prospects for a Renewal of the Left Dave Lindorff Busting Bush & Co. in New England James Murren Bombing Somalia Adam Engel Necropolis Now Website of Day Remember Song   March 4, 2008 Wajahat Ali Mumbo Jumbo: Naming Names with Ishmael Reed William Blum How Could Hillary Have Known? Bill Quigley The Cleansing of New Orleans Ralph Nader The Prince Harry Solution Patrick Irelan Oil and Health in Venezuela James J. Brittain / R. James Sacouman Uribe's Colombia is Destabilizing a New Latin America Norman Solomon The War Election Jacob Hornberger Hillary in Waco: the Missing Apology Andy Worthington Guantánamo and the European Parliament Mike Averko Kosovo and the Press Website of the Day Tex-Mex Primary   March 3, 2008 Jennifer Loewenstein Gazan Holocaust Alan Farago American Politics and the Faltering Economy Richard Gott Colombian Deaths in Ecuador Wajahat Ali Who Speaks for a Billion Muslims? Analyzing the World Gallup Poll with John Esposito Paul Craig Roberts The Mukasey Conspiracy: a Bi-Partisan Attack on the Constitution Robert Weissman When Multinationals Say Adieu Uri Avnery Good Morning, Hamas Martha Rosenberg When Your Meat is a Downer Eva Liddell Leave the Next Dance for Bill Michael Donnelly Will Ferrell Does Flint Website of the Day Muddy Waters: Train Fare Home Blues   March 1 / 2, 2008 Alexander Cockburn The Race Card Paul Craig Roberts The Political Trial of Don Siegelman Kathleen and Bill Christison Nader the Best Antidote to American Imperialism Nelson P. Valdés Cuba After Fidel Christopher Brauchli Meet Mr. Nursultan Nazarbayev: Friend of Bill, George and Dick Ron Jacobs Inside the Secret City: Bomb Making at Oak Ridge John Ross The New Conquistadores: Spain's Reconquest of Mexico Robert Fantina Posturing Over Patriotism: Obama and Those Lapel Pins Robert Weissman Hidden in Plain Sight: Human Rights Hypocrisy Mohammed Omer Fear in Gaza Remi Kanazi Barack Obama and the Politics of Xenophobia Bob Jackson Why is Yellowstone Destroying Its Bison Herd? Richard Rhames Casual Threats: Loaded with Mercury Franklin Lamb Lebanon Awaits the Arrival of the USS Cole Rannie Amiri Showboat Diplomacy: US Warships Steam Toward Lebanon David Michael Green The Three Faces of Hillary: the Politics of Flim-Flam Conn Hallinan Notes from the Southern Cone Faheem Hussain Prince Harry of Afghanistan and the Meaning of Normalcy Poets' Basement Gibbons, Orloski, Gardner and Ford Website of the Weekend The Palestine Chronicle Needs (and Deserves) Your Help!     February 29, 2008 Matt Gonzalez The Obama Craze Jonathan Cook Academic Freedom? Not for Arabs in Israel Joshua Frank Obama and Israel Anthony DiMaggio The Unilateral Presidency: Signing Statements and the Rollback of American Law Linn Washington, Jr. Cop Abuse in America Binoy Kampmark Hubris and Nemesis Robert Bryce Energy Efficiency May be a Good Thing, But It Won't Cut Energy Use Sonja Karkar Australia's Government Continues Its Love Affair with Israel Dave Lindorff A Manchurian Candidate in the White House? Obama or Bush? Website of the Day Olduvai George   February 28, 2008 Patrick Cockburn "Iraq" Falls Apart Fred Gardner The Birth of NAFTA Michael Levitin The Crisis in Kosovo is Just Beginning William S. Lind The Fake State of Kosovo David Macaray A Ray of Hope for Organized Labor Stephen Fleischman Nader's Latest Run: Monkey Wrench or Cattle Prod? George Wuerthner The Myths of Forest Health: Why Ecological Logging is an Oxymoron Laura Carlsen The North American Union Farce Carl Finamore Why the Delta-Northwest Deal Hasn't Taken Off Michael Dickinson The Day I Bombed the House of Commons Website of the Day Plane Stupid   February 27, 2008 David Rosen Playing the Race Card: Obama, Love Across the Color Line and Political Dirty Tricks Vijay Prashad Bomber John: McCain and the 100 Year War Harvey Wasserman Incident at Turkey Point: Did Florida Go to the Radioactive Brink? Andy Worthington Guantánamo's Shambolic Trials: Pentagon Boss Resigns, Ex-Prosecutor Joins Defense Wajahat Ali Pakistan for Sale: an Interview with Ayesha Siddiqa on Pakistan's Military Economy Peter Morici The Auction-Rate Securities Fiasco: a Drama of Greed and Betrayal Stephen Philion Conspiracy Theory, Fears of Betrayal and Today's Anti-War Movement Michael Donnelly Obama by Unanimous Decision Erica Rosenberg / Janine Blaeloch After the Land Deals: Will There be Any Wilderness Left to Protect? Website of the Day Dress Blues   February 26, 2008 Debbie Nathan Confessions of a Gitmo Guard Alan Dershowitz v. Frank Menetrez On Finkelstein Harvey Wasserman How Ohio Got Nuked Michael Colby Ralph Nader vs. the Fundamentalist Liberals Gary Leupp Condi vs. Putin on Bullying Belgrade David Orchard The New Conquistadors: Canada in Afghanistan Martha Rosenberg The Big HRT Fran Shor The Electoral Circus and Nader's Sideshow Serge Halimi The Dom Perignon Socialist Manifesto: Bernard Henri-Levy's Plan for the French Left Global Balkans Neo-Liberalism and Protectorate States in the Post-Yugoslav Balkans: an Interview with Tariq Ali Website of the Day Texistentialism   February 25, 2008 Roger Morris A Death in Damascus Anthony DiMaggio Military Bases, the Media and the Democrats Ralph Nader Why I'm Running Patrick Cockburn Iraq Broils Paul Craig Roberts Kosovo and the Empire Crazies Peter Morici Bernanke's Failing Policies: a Long Recession Looms Dave Lindorff General Welch's Whitewash: What We Still Don't Know About That Minot Nuke Incident Saul Landau / Farrah Hassen Fanatics, Mountebanks and Drillers: a Bloody Oil Film Heather Gray James Orange, Civil Rights Legend Robert Weitzel Accomodating Torture John Halle Kucinich Goes Down Website of the Day Do the Trunk Monkey! February 23 / 4, 2008 Alexander Cockburn The Mushrooming Clouds That Hang Over McCain Paul Craig Roberts Obama and Global Trade Wajahat Ali Omissions of the Commission: an Interview with Phillip Shenon on the 9/11 Commission Ralph Nader Neutering the FDA Jürgen Vsych "What Was Ralph Nader Thinking?" Fidel Castro Watching the US Presidential Campaign from Havana Andy Worthington Britain's Guantánamo David Macaray Unions Under Assault Jeremy Scahill The Real Story Behind Kosovo's Independence David Krieger Stanley Sheinbaum Caging the Cold War Monster Ron Jacobs Building for the Future Michael Garrity The Last, Best Hope for the Northern Rockies Brian McKenna Higher Ed's "Civic Engagements" Get Dumbed Down Missy Beattie Over the Hill with John McCain Fred Gardner American College of Physicians Takes Pro-Cannabis Stand (Mostly) Boris Kagarlitsky The Growth of the Russian Labor Movement Mike Ferner Kick That Barrel Dan Bacher On the Trail with the Border Angels Christopher Ketcham Hillary Goes Where Obama Fears to Tread Poets' Basement Davies and Buknatski Website of the Weekend Obama Mariachi   February 22, 2008 Mike Whitney The Bonfire of Capital Jason Hribal Elephants and the Circus: The Story of Janet Liaquat Ali Khan Arresting Musharraf Joshua Frank That Obama Glow: the Nuclear Industry's Golden Child Dave Lindorff Vicki's John: Ask Not What She Did for Him, Ask What He Did for Her! Liliana Segura When Torture is Old News: McCain's Blonde Diversion Robert Fantina Castro, Bush and Cuba: a Fiasco Waiting to Happen? Yifat Susskind The ABCs of Death: Bush vs. Africa's Women Norm Kent Pushing 60 with Pot Website of the Day Bush Gets Down in Liberia February 21, 2008 Saul Landau Fidel Steps Aside Elizabeth Schulte Left Behind, With No End in Sight: America's Long-Term Unemployed Helen Redmond Health Care as a Human Right Benjamin Dangl Undermining Bolivia Michael Levitin Kosovo's Dilemma Liam Leonard Fear and Loathing on the Emerald Isle Patrick Irelan Land and Food in Venezuela Linn Cohen-Cole Poor Ohio: a Second Letter to Hillary on Her Ties to Monsanto Michael Simmons Daydream Believer: John Stewart, the Miles Davis of Folk Music CounterPunch News Service A Message from the Women of Okinawa to US GIs Website of the Day Cop Abuse in Shreveport             Subscribe Online

March 26, 2008 Welfare on Wall Street Greed Pays By SHARON SMITH On March 19, JPMorgan Chase chief executive Jamie Dimon joined Bear Stearns chief executive Alan Schwartz to face a group of 400 stunned Bear executives. Five days earlier, Bear Stearns, one of Wall Street's five largest investment banks, had lost $17 billion of wealth, triggering the biggest financial panic since the Great Depression. Bear approached complete collapse before the U.S. Federal Reserve stepped in to rescue it by engineering the emergency funding that allowed commercial giant JPMorgan to take over Bear, the first time the Fed has engineered such a rescue since the 1930s. Dimon and Schwartz somberly explained to the assembled executives, "we here are a collective victim of violence," as if the investment firm had been beaten and robbed by a gang of creditors instead of aiding and abetting its own rapid demise. It is impossible to feel sympathy for the situation now facing Bear's high-flying management team. Schwartz continued to issue public assurances of Bear's solvency until the day the firm collapsed. Current non-executive chairman and former CEO Jimmy Cayne, who achieved billionaire status a year ago, has spent the better part of the last year attending to his hobby of card playing and was indeed at a bridge tournament in Detroit while the value of Bear stocks was evaporating last week. Even now, Cayne will walk away with more than $16 million while JPMorgan has already reportedly made lucrative offers to hire top Bear bankers and brokers. Under pressure from Bear's board of directors, Morgan sweetened the pot, raising its initial offer of $2 per share to $10 on March 24-again winning praise from Schwartz. Bear's 14,000 employees, in contrast, have fared poorly. They own an estimated one-third of its total shares, which only last year peaked at $171.50 per share. As Bear sheds half of its workforce, many will face financial ruin. The cost to workers whose pension funds have been invested in Bear Stearns is unknown. "Wall Street is really predicated on greed" The Bear Stearns debacle is just the latest phase of the financial distress triggered by the subprime mortgage crisis last July, and it is unlikely to be the last. In a moment of candor, former Bear board member Stephen Raphael summarized the unfolding crisis facing the U.S. financial system, telling the Wall Street Journal, "Wall Street is really predicated on greed. This could happen to any firm." The current financial panic is based on the knowledge that since the 1990s, Wall Street investment firms have orchestrated get-rich-quick schemes predicated on a model of betting using the odds of Russian Roulette, in which managers offer investors opportunities to make fast money in high risk transactions-through hedge funds, structured Investment Vehicles (SIVs) and other "innovative" derivative instruments such as Collateralized Debt Obligations (CDOs). These investment schemes, which operate free of government regulation or oversight, have been described as a "shadow banking system," which operates in virtual secrecy, accountable to no one, based on mathematical models investors could not possibly understand and leveraged by borrowed money many times the actual money invested-at terms always skewed in favor of the short-term gains for managers. The wheels for the current financial perfect storm were set in motion many years before the subprime mortgage crisis hit, and the Bush administration deserves no credit. As one of his last acts as president in December 2000 Bill Clinton signed into law the Commodity Futures Modernization Act, which formally deregulated companies sponsoring derivatives schemes, sponsored by Texas Republican Phil Gramm, now the vice chairman of the Swiss investment firm UBS. As Financial Times columnist Martin Wolf noted, "With the 'right' fee structure mediocre investment managers may become rich as they ensure that their investors cease to remain so." On March 13, the Carlyle Capital Corporation hedge fund collapsed with debts amounting to 32 times its capital. The significance of Carlyle's demise was overshadowed by the Bear Stearns debacle. Yet, as Wolf argued, such vehicles are "bound to attract the unscrupulous and unskilled, just as such people are attracted to dealing in used cars "It is in the interests of insiders to game the system by exploiting the returns from high probability events. This means that businesses will suddenly blow up when the low probability disaster occurs, as happened spectacularly at [the U.K. bank] Northern Rock and Bear Stearns." Two of Bear Stearns hedge funds went under in the last six months due to disintegrating subprime mortgage holdings. But as the recent string of Wall Street crises exposed, the shadow banking system has increasingly intersected with commercial banks. It is difficult to know where one ends and the other begins, since banks have been allowed to keep such investment vehicles off their balance sheets--legally. As the New York Times reported on March 23, "derivatives are buried in the accounts of just about every Wall Street firm, as well as major commercial banks like Citigroup and JPMorgan Chase." In recent years, mortgages have been carved up and bundled into investments that changed hands before the ink was dry, as investment banks and other vehicles bundled the debt and passed it on in a global game of "hot potato" that passed on risks to the entire international banking system. No bailout for distressed homeowners Using up to $30 billion of taxpayer money-and without congressional approval-the Federal Reserve instantly mustered a bailout plan for Bear Stearns. But no relief is in sight for the more than 20 million homeowners whose mortgages are expected to exceed the value of their houses by the end of the year-roughly one-quarter of U.S. homes, according to economist Paul Krugman-or the more than 2 million facing foreclosure within the next two years. While house prices have already have dropped 5-10 percent, most economists predict they will drop by another 20 percent or more over the next two years. But as Krugman notes, regional disparities will be devastating: "In places like Miami or Los Angeles, you could be looking at 40 percent or 50 percent declines."_ Yet, as the Financial Times recently observed, working-class homeowners are the most vulnerable to market trepidations: "remarkably, bankruptcy laws currently provide that almost every form of property (including business property, vacation homes and those owned for rental) except an individual's principal residence cannot be repossessed if an individual has a suitable court-approved bankruptcy plan." Thus far, the Bush administration's response has promoted a "tough love" approach toward delinquent homeowners, lured into obtaining mortgages by predatory lenders during the heyday of the housing boom. Preventing housing prices from falling will prolong the agony, claims to Treasury Secretary Henry Paulson: "We need the correction." Even the Wall Street Journal observed this glaring discrepancy, commenting, "Why a 'bailout' for Wall Street, and none for homeowners? Treasury Secretary Paulson is trying [to defend] what the government just did: 'Given the turbulence we've had in our markets and the way that sentiment has swung so hard toward 'risk adversity,' our top priority is the stability of our financial system, because orderly, stable financial markets are essential to the overall health of our economy.'"__ Those expecting a Democratic Party victory in November to reverse Wall Street forces must reconsider. "Hillary Rodham Clinton and Barack Obama, who are running for president as economic populists, are benefiting handsomely from Wall Street donations, easily surpassing Republican John McCain in campaign contributions from the troubled financial services sector," noted the Los Angeles Times. By the end of 2007, 36 percent of the U.S. population's disposable income went to food, energy and medical care, more than at any time since 1960, when records began. And that doesn't count, crucially, housing costs. Meanwhile, the other shoe has yet to drop. Sharon Smith is the author of Women and Socialism and Subterranean Fire: a History of Working-Class Radicalism in the United States. She can be reached at: sharon@internationalsocialist.org

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