A Tiny Revolution blogger Jonathan Schwarz (7/9/09) has posted a reminder that “back in March Phillip Swagel, who’d been assistant treasury secretary under Hank Paulson, wrote a long article about the TARP bailout called ‘The Financial Crisis: An Inside View.'”
Thinking that maybe “it would be news if Swagel had stated that Paulson, Bernanke and Bush’s attempts to foment panic to pass the bailout have ‘surely’ contributed to the current recession,” Schwarz lays out some quotes showing that actually “he did”: “The way in which the TARP was proposed and eventually enacted surely must have contributed to the lockup in spending,” and “they could plainly see that the U.S. political system appeared insufficient to the task of a considered response to the crisis. Surely these circumstances contributed to the economic downturn.”
To Schwarz, “this was obvious at the time. Back on September 26, I (among many, many others) asked: ‘How have things turned out before when the president, Treasury secretary, Federal Reserve chairman and a leading presidential contender all scream in public constantly about how we’re on the verge of a giant financial meltdown?'”:
In any case, there are no references to Swagel’s statement anywhere online except in the original document.
Likewise, Swagel suggests the mid-September financial situation might have been dealt with without an immediate appropriations bill by Congress: “A counterfactual to consider is that the Treasury and Fed could have acted incrementally, with backstops and a flood of liquidity focused on money markets and commercial paperÃƒÆ’Â¢ÃƒÂ¢”Å¡Â¬”Âbut not the TARP.”
That too has been mentioned nowhere online. Oh well.
All of which earns Schwarz’ scathing headline declaring the corporate media silence “Another Triumph for American Journalism.” Read the FAIR magazine Extra!: “Going All Out for Bank Bailout: Media Paint Crisis as Too ‘Urgent’ for Skepticism” (1/09) by Dean Baker & Kris Warner.