Guess Who the Addict Is?
No, Matt Taibbi hasn’t mellowed since his infamous Rolling Stone article last summer (“Inside the Great American Bubble Machine”).
Here’s an excerpt from the sequel:
Instead of liquidating and prosecuting the insolvent institutions that took us all down with them in a giant Ponzi scheme, we have showered them with money and guarantees and all sorts of other enabling gestures.
Instituting a bailout policy that stressed recapitalizing bad banks was like the addict coming back to the con man to get his lost money back.
–Matt Taibbi, “Wall Street’s Bailout Hustle”; Rolling Stone
Elsewhere in the piece, Taibbi poses a question that I’ve also addressed on this blog (“Dealing with the Devil: Why be a Goldman Sachs Client?“):
Why big institutional investors like pension funds continually come to Wall Street to get raped is the million-dollar question that many experienced observers puzzle over.
I think my explanation is still the most plausible:
Presumably, Goldman Sachs’ clients have decided that it is better to be on the inside of whatever scam(s) Goldman is running — presumably benefiting from them — than being on the outside, victimized like everyone else.
–Ross Kaplan, “Dealing with the Devil“; City Lakes Blog (9/25/2009)
Key word from the above: ‘presumably.’
Even if you don’t like Taibbi, read his piece for his primer on street scams and hustles.