To summarize, WaPo had published an article stating that soon to be released results of a “stress test” for major banks is most encouraging and that given the support they’ve received, we can expect things to improve.
According to the article, banks “now have enough money to weather the recession,”…an “outcome more positive than many investors had expected.”
Unfortunately, according to Klein, “the poorest and most vulnerable people in the country are being asked to bail out the most wealthy.”
“It really does fit the thesis of The Shock Doctrine,” she said, referring to her book in which she exposes how governments and powerful corporations use disasters and upheavals to gain even more power.
“Here we have just this transfer, this massive transfer of public wealth into private hands,” Klein explained, “and that’s continuing and it’s much, much larger, just on a much larger scale than any of the investments we’re seeing through the stimulus or the budget.”
While almost $12 trillion has been granted the financial institution, a comparatively paltry (in relative terms) $1 trillion is going to economic stimulus.
“My real concern is — has been my concern from day one — is that the crisis on Wall Street, created by deregulated capitalism, is not actually being solved,” continued Klein. “It’s being moved. A private sector crisis is being turned into a public sector crisis.”
“They are already cutting corners,” she told Maddow. “Now Aids funding in Africa is being cut by $6.6 billion. So who is paying for this? This is where the unfairness of it becomes very clear.”
This video is from MSNBC’s The Rachel Maddow Show, broadcast May 6, 2009.Vodpod videos no longer available.