I was, in the words of many a Capital Hill douchebag, “cautiously optimistic” when I read this today in the Washington Post.
A massive federal plan to revive the U.S. financial system ran into intense skepticism today on Capitol Hill, where lawmakers from both parties questioned whether it would work and demanded protections for taxpayers with tough oversight.
Oversight! Now there’s a role Congress hasn’t taken very seriously in the past seven years. But, if real, this attitude shift is welcome –a bit late, and a bit cynical coming from Republicans– but very, very welcome nonetheless.
For reasons best expressed by Naomi Klein, I am still pretty worried.
The second [phase of the economic shock] comes when the debt crisis currently being created by this bailout becomes the excuse to privatize social security, lower corporate taxes and cut spending on the poor. A President McCain would embrace these policies willingly. A President Obama would come under huge pressure from the think tanks and the corporate media to abandon his campaign promises and embrace austerity and “free-market stimulus.”
So, even if there is strict Congressional oversight of the “bailout” and it’s followed by much greater regulation of Wall Street, it’s still likely that those of us who bear the least responsibility for the crisis in the first place (especially the poor) will ultimately pay most dearly.