A so called “bailout backlash”, a huge rise in public antagonism toward banks and Wall Street, is set to provide the Obama administration and the governments of the G20 nations a pretext to usher in a new era of international centralization and control over financial practices and institutions.
The backlash or “bailout rage” as others have dubbed it, has been further heightened by revelations regarding AIG’s squandering of almost $100 billion in taxpayer rescue funding — which it siphoned off to Goldman Sachs and a number of European banks — in addition to the company’s plan to continue issuing massive bonuses to the people in the very division that were responsible for it’s spiraling derivative-driven downturn.
The intention to use such practices to push for increased authoritative regulation is clear.
“Mr. Obama’s advisers argued that to at least some extent, this was a sentiment they could tap to push through his measures in Congress,” reported The New York Times yesterday.
However, the Times article also highlights the fine line that Obama and other heads of state must tread in utilizing such backlash for their own gain.
“The danger, aides said, is that if he were to become identified as an advocate for the banks and Wall Street, people could take out their anger on him.”