3rd Way Document Proves Dem Party Supports Banks' Institutionalized Looting

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Third Way Document Proves Democratic Party Supports Institutionalized Looting by Banks

It is one thing to suspect that something is rotten in Denmark, quite another to have proof. Ever since Obama appointed his Rubinite economics team, it was blindingly obvious that he was aligning himself with Wall Street. The strength of the connection became even more evident in March 2009, when Team Obama embarked on its “stress test” charade and bank stock cheerleading. Rather than bring vested banking interests to heel, the administration instead chose to reconstitute, as much as possible, the very same industry whose reckless pursuit of profit had thrown the world economy off the cliff.

But now we see evidence in a new paper by the think tank Third Way of an even deeper commitment to pro-financier policies. The Democratic party has made clear that it supports institutionalized looting by banks, via the innocuous-seemeing device of rejecting the idea of writedowns on bonds they hold.

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And make no mistake about the role of Third Way. Third Way runs the policy apparatus of the Democratic Party. In Congress, staffers attend regular Third Way policy briefings, where the group hands out pre-packaged legislative amendments in legal form, generic press releases, polling around those policy ideas, and talking points. It’s a soup-to-nuts policy apparatus. Most of these ideas are harmless – like increased volunteerism – but some are not, like various tax proposals.

The group has enormous juice. On the Congressional side, it has six honorary Senate co-Chairs, and seven House-side co-Chairs. Jim Clyburn, a co-Chair, is in the House Democratic leadership. Two current cabinet members are former co-Chairs. Steny Hoyer, the House minority whip, held regular briefings for the freshmen member staff in the last Congress.
On the administration side, former Third Way board member Bill Daley is now White House chief of staff. Ron Klain, who was Biden’s Chief of Staff, is now with Third Way. The White House is pretty much full of Third Way-style apparatchiks.
Third Way also echoes, nearly entirely, the White House’s political line (though it is slightly ahead on gay rights). Here’s Third Way praising the Gang of 6 talks, opposing cut, cap, and balance, encouraging entitlement cuts, pushing various free trade agreements


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http://www.nakedcapitalism.com/2011/07/third-way-document-proves-democratic-party-supports-institutionalized-looting-by-banks.html