I'm reading Matt Taibbi's Griftopia. You'll be relieved to know I won't be going into the history here too much, except to say I am surprised at how much praise Taibbi's reporting got back in when the crisis was on. He often tells us how mind-bendingly hard it is to understand many of the financial transactions he mentions, but his mind seems pretty well-ironed: he hasn't really tried to understand them. Instead he seems to assume that any financial transaction whose workings are not immediately transparent is "a Ponzi scheme." Much like "savages" in old movies assume any complex technology to be witchcraft.
It doesn't have to be this way. While a lot of math goes into some of these hedges and insurance schemes, they can be absorbed and explained by regular humans. Planet Money (a nice bit of work here) did far far better than Taibbi does. Taibbi doesn't really even try.
As several folks have noted, Taibbi is pissed off and writes that way, which is occasionally refreshing, but he often uses the visceral to cover up the basic lack of content--the vacuousness of a simplistic text dealing with a subject he readily acknowledges is deeply complex.
And the book isn't really empty. It's full of intent. Taibbi is writing propaganda--his goal is to elicit what he considers to be the appropriate reaction to this situation, not to explain it to you and let you do the reacting.
Which brings me to an irony I savored while reading Taibbi's book. The opening chapter is about the Tea Party, which Taibbi is, of course, largely contemptuous of, though he tries to seem like he's on the side of the more-or-less little guy, as most Tea Party rank and file are. But nearly everything Taibbi says about the Tea Party, can be turned around and said about Taibbi just as truthfully.
Common sense sounds great, but if you’re too freaking lazy to penetrate the mysteries of carbon dioxide—if you haven’t mastered the whole concept of breathing by the time you’re old enough to serve in the U.S. Congress—you’re not going to get the credit default swap, the synthetic collateralized debt obligation, the interest rate swap, etc. And understanding these instruments and how they were used (or misused) is the difference between perceiving how Wall Street made its money in the last decades as normal capitalist business and seeing the truth of what it often was instead, which was simple fraud and crime.For the Tea Party, common sense; for Taibbi, truth. Because his truth doesn't involve actually understand (or at least not conveying an understanding of) synthetic collateralized debt onligations. It just involves evaluating them properly by Taibbi's lights: as theft. But really that's not much better than the Tea Party's blind heroization of the capitalist.
Our world isn’t about ideology anymore. It’s about complexity. We live in a complex bureaucratic state with complex laws and complex business practices, and the few organizations with the corporate will power to master these complexities will inevitably own the political power. On the other hand, movements like the Tea Party more than anything else reflect a widespread longing for simpler times and simple solutions—just throw the U.S. Constitution at the whole mess and everything will be jake. For immigration, build a big fence. Abolish the Federal Reserve, the Department of Commerce, the Department of Education. At times the overt longing for simple answers that you get from Tea Party leaders is so earnest and touching, it almost makes you forget how insane most of them are.Well, the world may be about complexity, but Taibbi certainly isn't about explaining it all to us. Just throw some real leftist populism at a problem and everything will be copaesthetic. For Wall Street, just arrest some people and make everything else simple again. In place of experts who actually might understand all that complexity, let's impose populist answers.
What voters don't realize, or don't want to realize, is that the dream was abandoned long ago by this country's leaders, who know the more prosaic reality and are looking beyond the fantasy, into the future, at an America plummeted into third world status.In place of immigration and cultural decay, we have Taibbi's To Third World in a Handbasket crisis.
The engine for looting the old ghetto neighborhoods was the drug trade, which served two purposes with brutal efficiency. Narco business was the mechanism for concentrating all the money on the block into that Escalade-hungry dealer's hands, while narco-chemistry was the mechanism for keeping the people on his block too weak and hopeless to do anything about it.In place of the vast, decades-long Kenyan Obama conspiracy, we have the elitist conspiracy for each and every sociological problem.
And in place of "the constitution" as a shibboleth we get the "ponzi scheme" as our empty, but hopefully inspiring signifier.
[Michelle] Bachman has a lot of critics, ut they miss the genius of her political act. Even as she spends every day flubbing political SAT questions, she's always dead-on when it comes to her basic message, which is that government is always the problem and there are no issues the country has that can't be worked out with basic common sense . . .There's more than a little admiration in this description, and, in fact, the Tea Party is more than a little bit the model for this chapter as much as its subject.
. . .thirteen million Tea Partiers [believe] the Obama health care plan . . . is the first step in a long-range plan to eliminate the American free enterprise system and install a Trotskyite dictatorship.And funny you should mention Trotskyites, because they were much on my mind in portions of this book--the contempt for small truths in the face of and to bring home the big one (class warfare); the need to create a sense of crisis and deep wrong to mobilize the revolution . . . Taibbi seems to be using the same propagandistic methods of the right to advance a (to him) more revolutionary, but also blinkered and manipulated movement to the political fore.
I'm not red-baiting here: I think socialism and communism are pretty much normal parts of the political spectrum. There's no dishonor in believing in them. What I do like to point out, though, is the complex and deeply disingenuous game revolutionary parties play in heightening crises rather than seeking solutions to them. And the truth (what Taibbi claims to stand for) is usually an early casualty in the drive to revolution. And I think that Taibbi knows the complex truths as well as Planet Money or Paul Krugman does. He just finds it inconvenient to his activism.
Vodka Party anyone? Stronger stuff than tea, yes, but I'll not be joining.