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Featured Guests

Charles Derber
Professor - Department of Sociology
American culture and global capitalism; historical role of corporations; corporate power; influence of financial markets; how to democratize our corporate system; globalization; links between criminal wilding on the street, emotional wilding in families, economic wilding on Wall Street, and political wilding in Washington; the role of morality in politics and social change, in our current wars, and in the current elections, particularly in an age dominated by brutal militarism and global economic and environmental devastation.
Boston College
Chuck Collins
Senior Scholar/Coordinator of Working Group on Extreme Inequality
Economy, opportunity, inequality, aggressive financial disgorgement policies, surcharge on incomes and wealth over $5 million
Institute for Policy Studies
Holly Sklar
Writer and Lecturer
Economic and social policy, economic inequality, income and wealth disparity, wage gap, public programs and living wages, tax policy, economic and community development, economic alternatives, economy
Let Justice Roll
Jared Bernstein
Senior Economist
Low-wage labor market, minimum wage, income and wage inequality, poverty, education, family income inequality, trends in employment compensation, Katrina, effects of the Davis Bacon Act on wages and reconstruction, impact of immigration on wages, wage and economic data used to write immigration policy.
Economic Policy Institute
John Irons
Senior Economic Research and Policy Analyst, and Staff Economist
Federal budget, tax, and management issues, from presidential and congressional proposals to final appropriations; domestic impact of current and proposed policies; federal budget issues, both tax and spending
OMB Watch
Josh Bivens
Economist
State of the economy, economic issues, Bush’s economic stimulus plan, alternate ways to safely and successfully stimulate the economy, macroeconomics and the impact of globalization on the U.S. and developing economies
Economic Policy Institute
Mike Lapham
Responsible Wealth Program Director
Wealth and economic justice, tax policy, Responsible Wealth, unemployment, fair taxes, living wage, greater corporate accountability, broadened asset ownership
Responsible Wealth
Ross Eisenbrey
Vice-President
Labor and employment law, occupational safety and health, pension policy, economic budget issues
Economic Policy Institute
Sam Pizzigati
Labor Journalist
Economic inequality; income and wage disparity; wage gap; minimum wage; maximum wage; labor

Bailout Fails: Now What?

Dow Drops 777 points (an estimated $1.2 trillion loss in one day)
Issue Area:


Bailout Fails: Now What?

The House of Representatives on Monday rejected a $700 billion bailout of the American financial industry that was pushed by the Bush Administration and endorsed by both presidential candidates. In rapid response, the Dow Jones closed with a record loss of 777 points, one of the worst drops since 1987 when the Dow fell 22% in one day, and 93 points more than the first day of trading following 9/11/01. Also, Wachovia Corporation announced it will sell its retail bank, corporate investment bank and wealth management businesses to Citigroup, just another one of many reports this month of failed financial institutions.

Many criticisms surfaced in response to the proposed $700 billion bailout plan, which would have given unprecedented powers to the U.S. Treasury Secretary, an unelected position. Democratic lawmakers worked to include more federal oversight of the bailout funds, more protections and assistance to homeowners and citizens dealing with foreclosures and restrictions on CEO pay. Congress is expected to take up the bailout plan again later this week before they recess until the election.

What contributed to the financial crisis? What can lawmakers do now to keep the country's financial system from recession or depression? What will the crisis mean to our economy, and for how long? What now?