In his weekly commentary, John Hussman gives some talking points to the Wall Street protesters, perhaps so they don’t get blindsided by reporters questioning whether they’re smart enough to be staging a protest.
Hussman offers them all 4 key talking points they should know:
- “Failure” means bondholders shouldn’t be guaranteed every penny.
- The Federal Reserve’s purchases of Fannie and Freddie debt were illegal.
- Creating shell companies like Maiden Lane to buy bad Wall Street assets was illegal.
- Policies of bailouts only misallocate capital and exacerbate the wealth skew.
He goes into each point in more depth in his piece, which, really, any Wall Street protesters should probably skim over.
What should be more worrisome for Wall Street is just that this whole period is now getting relitigated in public all over again.
The Tea Party was very much anti-TARP and anti-bailout, but the message never got taken to the banks quite so directly as the way it’s happening now. It can’t end well.