Robert Reich on sovereign wealth funds devouring the banking system
February 27, 2008
So it’s the biggest irony in financial history. Decades of U.S. government deregulation of Wall Street has reaped a whirlwind of irresponsible speculation — ending in a financial meltdown that’s being remedied by government ownership, with all the strings that come with it. And it’s not even our government that’s holding the strings.
The banking system is a far more crucial ingredient to our infrastructure security than our ports, yet none of our brave legislators seem to be making even a peep – rather they seem desperate to find ways to funnel more and more money we don’t have to the whiny babies of high finance on our grandchildren’s tab. (see also: The Toddler Economy)
During the Dubai Ports drama a few commentators pointed out the fact that a major port used primarily by the Navy was owned by a fund headed by a major figure in the People’s Liberation Army. No doubt part of the reason for the double standard was racism, but the major factor was that China already owns our economy and our government’s debt. Imagine what will slip through now that they own Morgan Stanley.