Matt Taibbi on the Global Economic Crisis

Trying to comprehend the Global Economic Crisis, a diligent lay reader can construct some broad narrative of the scale and motives of the financial sectors' machinations and the political and regulatory duplicity by reading Paul Craig Roberts, Nouriel Roubini's Global EconoMonitor, Paul Krugman, CounterPunch, among several other sources late at night.

But the undertaking is still like trying to understand the mathematics of SuperString Theory. We are not equipped.

Matt Taibbi's 8,700-word piece in Rolling Stone puts together the most coherent piece that I have read yet.

Check Taibbi's piece out, and bear it in mind as you read of the next attempt by the Obama administration (and the GOP pushback and its alleged concern for the everyday American) to try to contain this seeming black hole that appears to have come from nowhere and is somehow aligned with strange forces in our society, equipped with properties that transform our government into some vaguely malevolent entity. Sounds like science fiction.

Most Americans harbor vague notions that our country is run by a few powerful interests looking out for themselves. Most Americans appear to have been correct.

An excerpt from Taibbi:

So it's time to admit it: We're fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we're still in denial — we still think this is some kind of unfortunate accident, not something that was created by the group of psychopaths on Wall Street whom we allowed to gang-rape the American Dream. When Geithner announced the new $30 billion bailout, the party line was that poor AIG was just a victim of a lot of shitty luck — bad year for business, you know, what with the financial crisis and all. Edward Liddy, the company's CEO, actually compared it to catching a cold: 'The marketplace is a pretty crummy place to be right now,' he said. 'When the world catches pneumonia, we get it too.' In a pathetic attempt at name-dropping, he even whined that AIG was being 'consumed by the same issues that are driving house prices down and 401K statements down and Warren Buffet's investment portfolio down.'

Matt Taibbi on the American Political Culture

Great stuff from Matt Taibbi in Rolling Stone.

(T)he very first response of the entire national media apparatus was to denounce (Rev.) Wright as a kind of living disease and shriekingly demand that Obama do the same.

These controversial occasions, it should be said, are favorites of the national punditry. They offer an opportunity for slothlike, couchbound columnists everywhere to dress themselves up in white-hot outrage and to pen long accusatory columns in a tone suggesting that all contentment and happiness in their lives will henceforth be impossible until the offending agent is fully and completely shunned by society.

Taibbi's right; the next thing we know Obama will be accused of ... never mind.

The Surge and the Bush Lie

by Nir Rosen in Rolling Stone

It's a cold, gray day in December, and I'm walking down Sixtieth Street in the Dora district of Baghdad, one of the most violent and fearsome of the city's no-go zones. Devastated by five years of clashes between American forces, Shiite militias, Sunni resistance groups and Al Qaeda, much of Dora is now a ghost town. This is what "victory" looks like in a once upscale neighborhood of Iraq: Lakes of mud and sewage fill the streets. Mountains of trash stagnate in the pungent liquid. Most of the windows in the sand-colored homes are broken, and the wind blows through them, whistling eerily. House after house is deserted, bullet holes pockmarking their walls, their doors open and unguarded, many emptied of furniture. What few furnishings remain are covered by a thick layer of the fine dust that invades every space in Iraq. Looming over the homes are twelve-foot-high security walls built by the Americans to separate warring factions and confine people to their own neighborhood. Emptied and destroyed by civil war, walled off by President Bush's much-heralded "surge," Dora feels more like a desolate, post-apocalyptic maze of concrete tunnels than a living, inhabited neighborhood. Apart from our footsteps, there is complete silence....

But loyalty that can be purchased is by its very nature fickle. Only months ago, members of the Awakening were planting IEDs and ambushing U.S. soldiers. They were snipers and assassins, singing songs in honor of Fallujah and fighting what they viewed as a war of national liberation against the foreign occupiers. These are men the Americans described as terrorists, Saddam loyalists, dead-enders, evildoers, Baathists, insurgents. There is little doubt what will happen when the massive influx of American money stops: Unless the new Iraqi state continues to operate as a vast bribing machine, the insurgent Sunnis who have joined the new militias will likely revert to fighting the ruling Shiites, who still refuse to share power.
"We are essentially supporting a quasi-feudal devolution of authority to armed enclaves, which exist at the expense of central government authority," says Chas Freeman, who served as ambassador to Saudi Arabia under the first President Bush. "Those we are arming and training are arming and training themselves not to facilitate our objectives but to pursue their own objectives vis-a-vis other Iraqis. It means that the sectarian and ethnic conflicts that are now suppressed are likely to burst out with even greater ferocity in the future." ...