"Look Mom...No Future"
Congress changes savings accounts and retirement funds, and America sleeps
Tess Vigeland 16 December 2014
http://www.theguardian.com/money/2014/dec/16/budget-sets-stage-for-next-meltdown
Do you remember where you were six years ago? Probably not. It was a long,
long time ago. December 2008 is not one of those dates that gets burned on
your brain, like the moon landing, or D-Day, or the end of Seinfeld.
But I remember where I was. I was at my post as the host of a personal
finance show on national radio, and I was taking calls from people all
over the country who were a) furious that their tax dollars were siphoned
off to pay for a massive bank bailout that crashed the world economy, and
b) outraged that the stock market was responding by wiping out their
already-meager retirement and college education savings funds.
In December 2008, the number of jobs shrank by 533,000, the worst monthly
loss in more than 30 years. Construction permits fell by more than 12% as
people stopped buying houses. And retailers got a giant lump of coal from
consumers, who decided that buying a bunch of worthless junk to put under
a tree was probably not the best idea when their bank accounts – not the
mention the country’s – were circling the drain.
“This shall not stand!” we cried, then. “We can never allow our own
savings to be put at risk like this!”
And yet. Here we are again.
Congress has passed, and President Obama has said he would sign, a budget
bill that allows banks to use your savings when they make giant financial
bets called derivatives. Again.
And because those savings are insured by the federal government, you, the
taxpayer, would be on the hook if those bets go south. Again.
This isn’t arcane financial stuff we can ignore. These are the exact
financial mechanisms that led to the global crisis just six (short!) years
ago. The Dodd-Frank reform law that was passed in the wake of that crisis
forbade this from ever happening.
///
While you were sleeping
They came and took it all away
The lanes and the meadows
The places where you used to play
It was an inside job
By the well-connected
Your little protest
Summarily rejected
It was an inside job
Like it always is
Chalk it up
To business as usual
And they'll keep doin' it and doin' it
Doin' it, doin' it, doin' it
Doin' it, doin' it, doin' it
Until we all wake up
Wake up, wake up, wake up, wake up