Confessions of a Former Libertarian:

Salon.com / By Scott Parker

My Personal, Psychological and Intellectual Epiphany

I was a Buddhist concerned with world suffering — and I could no longer reconcile my humanity with my ideology.

Photo Credit: Shutterstock.com/Ryan DeBerardinis

During college, a friend admitted he was confounded by my politics. He didn’t know how to reconcile my libertarianism with my other commitments. We were Buddhists and vegetarians, and I knew exactly what he meant. The tension centered around compassion. He wanted to know how someone concerned with the world’s suffering wouldn’t adopt a more compassionate political perspective.

It was a reasonable question, one that I asked myself regularly. My stock answer was that while I supported compassion in the form of assistance to those in need, I opposed the clumsy government mechanisms we relied on for it, not to mention the veiled coercion behind them — where did anyone get the right to enforce their values at the barrel of a gun (meaning taxes), no matter how noble those values might be?

Pretty by-the-books stuff. Libertarianism represented to me a matrix of freedom that could be collapsed onto any particular set of individual values. It was a simple formula to live by: If enough people value X, those people will pay for X, whether or not X = someone else’s interest. Government intervention was at best superfluous to this outcome and at worst distorting of the collective will (measured as the aggregate economy).

When my friend offered the natural response, What if people fail to provide enough for those in need?, I resorted to the tried-and-true strategy of telling him the problem wasn’t a problem. The real problem was taxation or regulation or minimum wage or a failed incentive structure. If people were in need it was because government was preventing the market from providing for them.

What’s interesting to me now is not why this kind of thinking is wrong but why it was once so attractive to me.

I found my way to libertarianism in my teen years when I began reading some of its introductory texts and was attracted to the internal consistency of its policies. If you accepted that the individual was sacrosanct and the government’s only role was to protect the individual, everything else pretty much followed. Unlike mainstream liberalism and conservatism, which were constantly engaged in negotiations between social and economic freedoms, libertarianism was systematically clean and neat. So much so that I quickly stopped concerning myself with how ideas played out in the world. The ideas themselves were enough.

As a kid, you learn to refute anyone’s “theory” by snidely mocking — “In theory, communism works.” When I was in college, I knew that communism did not work, even in theory, and I was happy to tell you why. Only libertarianism worked in theory.

That in switching the terms of the joke I made myself its butt was, regrettably, lost on me. When the lens of ideology grows so thick it’s all a person sees, a sense of humor is often the first thing to be occluded.

So what accounts for my transition from orthodox libertarianism to an unremarkable liberalism? At the risk of putting the cart before the political horse, I’m not an isolated reasoning subject and individual actor but a complex and conflicted human in various social and environmental contexts, and the reasons I abandoned libertarianism are personal and psychological as well as intellectual.

It felt good to be libertarian. I could win political debates (to my satisfaction) by applying the internally consistent reasoning I so admired to any issue. My reluctance to compromise was a virtue that straightened my posture. I took my rigidity as a sign not of narrow-mindedness but of integrity, the consequence of careful advancement from first principles. This particular kind of coherency put me self-satisfactorily and peacefully to sleep on many nights.

But it also sometimes felt bad to be a libertarian. I didn’t like that people I cared about regularly thought I was a smug asshole. I didn’t like that so often in debates I sounded to myself like a smug asshole. Not my intentions — say what you will about the positions, I always held them sincerely — but the words themselves. They didn’t sound compassionate, as it got harder and harder to remind myself they really were supposed to be.

The ideological purity at the heart of libertarianism was so true that I was certain only good effects could follow from it. The plainness of this was apparent enough that I was actually perplexed when others didn’t see it on face value. Whenever an interlocutor pointed to a real-world counterexample I was ready with a distinction between the applied and the perfect libertarian policy.

But the truth an ideologue is at pains to accept is that no life can live up to ideology. We are a messy species living messy lives. And we are lucky for this. The intellectual libertarian wants the world to be the kind of ideal world it never can be. He (and it’s often he) is unable to live with ambiguity and compromise. The beautiful (it is a kind of beauty) logical edifice of libertarianism is built on the faulty premise that this is the kind of world that is built on logical edifices.

The discomfort I felt with libertarianism was the discomfort of my ideas not aligning with my experiences. My thoughts and feelings were at odds. The feeling nagging me was that I couldn’t reconcile my humanity with my ideology any more than my friend could for me. Over time, that feeling became a reason in its own right.

I saw, as many libertarians see, a world tangential to this world we live in, which is the world I always felt like I belonged to.




American propaganda stokes the fire of Ukrainian disintegration

The cynical exploitation of an imploding Ukraine may give Washington its biggest prize yet, and probably on the cheap, too

Prying the Ukraine loose from its historical moorings

The nation is spinning out of control—as planned.

The nation is spinning out of control—as planned.

By Patrice Greanville

As befits a loyal organ of the US ruling class—yes, Virginia, protestations to the contrary the US does have a ruling class—the New York Times and other leading Western media have been busy promoting all manner of tendentious “facts” about the situation in Ukraine. The Times, as pointed out by Steve Lendman in his column Media Scoundels Target Ukraine, has opened its opinion pages to a number of high-ranking establishment figures to pontificate on the Ukrainian disturbances, notably, on Jan. 28, to four former US ambassadors to that nation. (What the West Must Do for Ukraine). It would be hard to locate less impartial witnesses against an independent Ukraine (or any other nation, in America’s crosshairs, for that matter) than American government envoys, for constant intrigue on behalf of the empire and corporate advantage is their first and foremost mission. Such testimony saw light, of course, in addition to the regularly distorted reportage on Ukraine being dished out by the Times in its “news” pages.

ukraine-protests

Then, on Jan. 29, the Times continued its propaganda offensive with a piece by Yuri Andrukhovychjan ( Love and Hatred in Kiev), a man well known in Ukraine for his nationalist, “Pro-Ukraine” views (which he insists on denying despite abundant evidence to the contrary), and who is fiercely allied at present with the opposition and street rioters stealthily supported by Washington. As expected the op-ed packed a large number of falsifications and half truths, starting with the notion that the main source of violence lies with the government and not the demonstrators.

To most ears this sounds plausible enough to be accepted at face value, especially when we take account of the horrid condition of the masses around the world, a situation engineered and precipitated by the wholesale betrayal of the ruling cliques, including in the US, where cracking down on violent demonstrators remains par for the course.  Unfortunately for the propaganda gnomes, despite the tumult and the dead, this is not exactly what happened in the Ukraine, a country which, while riddled with appalling factional corruption, ethnic strife, and the eruption of a fervid brand of protofascism since its separation from the Soviet Union, has proved someting of an anomaly in this regard. Here the police and special forces have sensibly demonstrated unusual restraint in the face of an extremely high level of organized provocation by anti-government forces, an uprising that is now fracturing the very core of Ukrainian society, and, which, as Washington and its EU partners would wish, may succeed in dislodging the Ukraine entirely from the Russian orbit.

Ukraine is rent by deep regional and ethnic antagonisms.

Ukraine is rent by deep regional and ethnic antagonisms.

Should the Ukraine fall into the cynical US/NATO camp it would be a major setback not only for the Ukrainians themselves, who are now toying with the possible balkanization of their country a la Yugoslavia and even a murderous civil war, (not to mention a huge disillusionment with the realities of life under the harsh EU umbrella), but for those who resist the depredations of the West and its pestilential corporate-sponsored “globalisation” across all latitudes. (Ironically the Davos bigwigs, always ready to hide capitalism from retribution, have been quick to finger the impersonal “globalisation” as the culprit for the mounting inequality, unemployment and misery drowning the masses almost everywhere).  But let’s face it: the long decades of hardship and the social ruins and widespread corruption detonated by the installation of a freewheeling capitalism in the former Soviet bloc have made the rise of a popular fascination with the supposedly democratic and affluent West —a mirage comparable to a new Eldorado—a common phenomenon in the periphery of Russia, an illusion ready-made for exploitation by the world’s most opportunistic and meddling superpower.

That said, despite massive hypocrisy and media dissimulation, the engines for these disturbances are well known to those who follow these events without the blinders of the prevailing brainwash, and the signature of Washington’s malefic hand in the internal affairs of the Ukraine is clear and irrefutable. As pointed out on Jan. 31 by Stefan Steinberg in a piece on the wsws.org site,

In mid-January, the US Senate Foreign Relations Committee held a hearing entitled “Implications of the Crisis in Ukraine.” Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland, who travelled to Kiev to personally support demonstrators, and Deputy Assistant Secretary for Democracy, Human Rights, and Labor Tom Melia addressed the meeting stressing the strategic significance of UkraineNuland noted that the fate of Ukraine was warranted not only because it lay “at the center of Europe” but also because it was also a “valued” and “important” partner to the United States.In his own report to the meeting, Melia announced that the US had “invested” over $5 billion in Ukraine since the dissolution of the Soviet Union in 1991, with $815 million of this total going directly to pro-US NGOs. Melia also reported that, since 2009, the Obama administration had donated $184 million to various programs aimed at implementing political change in Ukraine.  Both Nuland and Melia underlined that the “US stands with the Ukrainian people in solidarity in their struggle for fundamental human rights”. Their comments were then supplemented by a report by former National Security Adviser Zbigniew Brzezinski, who warned many years ago of the central importance of Ukraine on the Eurasian chess board.

In other words, the US government itself admits it has spent over a billion dollars —a pretty hefty sum in a poor country like Ukraine—tweaking political events to its advantage, all behind the smug screen of helping the Ukies attain freedom and democracy! The actual figures are probably higher, as the moneys poured by the intel community into these operations are never entirely revealed to the public or even Congress.

The sheer audacity of the world’s strongest and most rapacious plutocracy pretending to teach others about democracy is something of a record in the annals of the Big Lie, but, unfortunately it gets worse. Nothing stays still and the techniques of destabilization pioneered by the West have continued to advance in the last 40 years. Remember Solidarnosc? The ultimately pathetic Lech Walesa? That was only a down payment. A crudish dress rehearsal for what would follow later in Czechoslovakia and other hapless lands. The Ukrainian revolt has all the markings of a new ugly hybrid spawned by the propaganda and intelligence machines of the West, one boasting the undeniable parentage of both the hypocritical “Orange Revolutions” and the tested violence of embedded agents provocateurs of the CIA/Gladio school of thuggery.  As far as the script goes for the Ukraine, the unrelenting character assassination of the targeted regime tells us that the object is nothing less than the replacement of Yanukovych with some new clique eager to do the bidding of the West, and the further isolation of Russia.

Given the enormous geostrategic importance of the Ukraine, where this callous maneuvering is likely to lead is neither good for the Ukrainians, nor for the prospects of a durable peace in the world. But then again that was never intended.

ABOUT THE AUTHOR
A renegade economist and media critic, Patrice Greanville is founding editor of The Greanville Post and
publisher of Cyrano’s Journal Today. He can be reached at greanville@gmail.com.




Tuning Out Obama

Television Ratings for State of the Union Lowest In 14 Years
by MIKE WHITNEY

Barack Obama breaks records for cynicism. A great pick for Wall Street, a true Trojan Horse.

Barack Obama breaks records for cynicism. Wall Street could not have picked a better Trojan Horse.

If you didn’t catch Obama’s State of the Union speech on Tuesday night, you’re not alone. According to Nielsen ratings, Obama’s hour-long presentation garnered less than 34 million viewers, an all-time low for the president and the “second-lowest rated since Nielsen began recording viewership in 1993.”

Apparently, Americans would rather spend their time watching Simpsons reruns or fiddling with their iPhones than listening to the pompous pronouncements of the Dissembler in Chief.  And good for them. It goes to show that no one really believes that a junior senator with a pedigree in community organizing is setting policy for the world’s only superpower. The idea is ridiculous. Obama is merely the mask that conceals the ruthless machinery of Empire. The real power lies beyond the veil, in the Deep State apparatus which decides everything from drone strikes to Gitmo, from NSA dragnets to habeas corpus,  from deficit-slashing austerity to the “pivot to Asia”. Obama has no say-so in any of these decisions. He’s merely a public relations invention whose job is to look sincerely into the teleprompter while announcing the latest round of budget cuts or more of the deeply-regressive social policies his puppetmasters crave.  That’s his job and everyone knows it.

_______
The author may be more optimistic about Obama’s drop off in popularity than we are—stupidity dies hard in America—but there’s no doubt that the constant cynical betrayals are finally beginning to take a toll even among the true believers. 
_______

Only now– judging by the SOTU ratings— he’s even failing at that task.

Why?

Because no one’s listening anymore. They’ve tuned him out, which means he’s lost his ability to shape public opinion.  President Snake-oil has become completely irrelevant, a non-factor in advancing elite policy. His presidency is effectively over. Good riddance.

That said, there have been some fine summaries of the SOTU speech that are worth reviewing. The best of these were posted on the World Socialist Web Site whose analysis (as usual) was laser sharp. Here’s a blurb from a piece by Bill van Auken:

“President Barack Obama’s State of the Union speech was a cynical propaganda piece, filled with fraudulent claims and promises that no one, least of all his audience at the US Capitol, believes in the slightest.

The annual address has long since become an ossified ritual, a kind of national pep rally into which social and political reality seldom intrudes…..

With Obama’s speech Tuesday night one had more than ever the sense of the president as chief representative of the financial aristocracy that rules America, speaking to a house filled with millionaire congress members and bought-and-paid-for representatives of big business.

It has more and more come to resemble a political echo chamber, in which the ruling establishment celebrates and talks to itself in utter indifference to the needs and concerns of the country’s working people.”  (“State of the Union: A bankrupt ruling class talking to itself”, Bill Van Auken, World Socialist Web Site)

Bravo, Van Auken! “An ossified ritual…. filled with fraudulent claims and promises that no one… believes in the slightest.”

That sums it up perfectly, doesn’t it?

Joseph Kishore, who also writes for the World Socialist Web Site, posted an equally impressive piece titled “Obama’s State of the Union address: An empty and reactionary charade”. Here’s a clip:

“Obama’s State of the Union address Tuesday …. was a mixture of pro-business nostrums, militarist jingoism and a jumble of penny-ante proposals. The media’s attempt to promote the speech as a major address on inequality was a deliberate falsification aimed at drumming up interest among a generally indifferent and hostile population…..

(The speech) was a threadbare attempt to cover over the reality of the past year, a year in which the mask fell off a society riven by historically unprecedented levels of social inequality and mass poverty, overseen by a vast police-state spying apparatus, on the verge of another global war of incalculable consequences and presided over by the most right-wing administration in US history…

As has become traditional in such events, Obama singled out individuals in the audience, generally victims of the policies of the ruling class, who are exploited to make various political points. Nowhere was this more sickening than at the end of the speech, when the president heaped praise on a veteran severely maimed by an explosion in Afghanistan.

The assembled congressmen—responsible for wars of aggression that inflicted a similar fate on thousands of Americans, while killing hundreds of thousands of Afghans and Iraqis—gave a lengthy standing ovation to one of the victims of their criminal policies. This spectacle was a fitting conclusion to a nauseating political ritual.”  (“Obama’s State of the Union address: An empty and reactionary charade”, Joseph Kishore, World Socialist Web Site)

Both articles are worth reading in full.

Obama’s abysmal State of the Union ratings suggest that the country has turned against him. People don’t trust the president anymore and they certainly don’t want to listen to his lying bullshit for an hour or so. It’s easier just to change the channel … which millions of them did.

MIKE WHITNEY lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.




Amanda Knox and the Wages of American Imperialism

By Marc Ash

Amanda Knox

To say that because a speck of Knox’s DNA may have been present — on a knife, or a bra clasp, in the apartment in which she resided — is absurd on its face and constitutes no evidence of anything. But while there is little chance that Amanda Knox is guilty of murdering anyone, she is in fact guilty of two very important things: being an inconveniently pretty young woman and being an American abroad in the Bush era.

Source: Reader Supported News

Amanda Knox and the international circus that surrounds her actually matter. It’s really about something bigger.

If it looks as though the case against Knox and Raffaele Sollecito is superficial at best, there’s a reason for that — it is. To say that because a speck of Knox’s DNA may have been present — on a knife, or a bra clasp, in the apartment in which she resided — is absurd on its face and constitutes no evidence of anything.

In addition, neither prosecutor got anywhere near presenting a viable connection between the man convicted of murdering Meredith Kercher, Rudy Guede, and Knox or Sollecito. The purported collaboration was the stuff of a poorly written work of fiction. In fact, there was no evidence of collaboration between Guede and Knox or Sollecito presented to the court at all.

In their totality, the combined theories presented to the three courts by two prosecutors were so illogical and utterly lacking in substantiation that it’s the prosecutors, not the defendants, who should have been on trial — for misconduct.

Further, that a second prosecutor could present a second case that all but abandoned the entire premise of the first case, after the first case was thrown out on appeal, is patently malicious, and absolutely does constitute a separate/unique judicial instance and double jeopardy in a very material sense. The whole thing makes a profound mockery of the entire concept of criminal justice.

But while there is little chance that Amanda Knox is guilty of murdering anyone, she is in fact guilty of two very important things: being an inconveniently pretty young woman and being an American abroad in the Bush era.

By the fall of 2007, Italy was in a significant state of conflict with the US over the Bush administration’s policy of extraordinary rendition. Of specific note were Italian kidnapping charges against nearly two dozen CIA agents for the kidnapping of Muslim cleric Abu Omar, resulting in 23 convictions. The New York Times reported, “Judge Oscar Magi handed an eight-year sentence to Robert Seldon Lady, a former C.I.A. base chief in Milan, and five-year sentences to the 22 other Americans, including an Air Force colonel and 21 C.I.A. operatives.”

Italy’s decision to confront America’s cavalier disregard for their borders, laws, and judicial system was in line with objections and threats of prosecution by several nations, including German arrest warrants for CIA agents in the kidnapping and extraordinary rendition case of Khaled el-Masri, a German citizen.

What was at issue for those nations from which citizens and residents were taken was their national sovereignty and the integrity of their judicial process. None of which appeared to matter to the Bush operatives, but mattered greatly to those nations where the crimes occurred — including, significantly, Italy.

In the midst of this international conflict simmering just below the surface of broad public view, a young American woman traveled to Perugia, Italy, to study. Her subsequent arrest and high-profile trial for the murder of roommate and fellow student Meredith Kercher would rivet world attention on the very same Italian judicial system that the US had casually disregarded throughout the Bush years.

Italy never got their CIA agents, but they got a pretty young girl from Seattle, and with her the undivided attention of America and the world to the authority of Italian justice.

It’s not clear if Amanda Knox will foot the bill for the 23 convicted CIA agents, but what is clear is that Italy and many other countries view America’s policy of rendition as indeed extraordinary, and they have a point to make.

ABOUT THE AUTHOR

Marc Ash is the founder and former Executive Director of Truthout, now the founder, editor and publisher of Reader Supported News: http://www.readersupportednews.org




Jamie Dimon’s Raise Proves U.S. Regulatory Strategy is a Joke

By Matt Taibbi, Rolling Stone

If you punish a firm, and its executives come out of the episode convinced their only problem was an irrational PR issue, your enforcement strategy probably needs tweaking. It doesn’t exactly send much of a message when, mere months after you’ve imposed record enforcement penalties, the CEO of your target company is being led down Wall Street on a donkey, board members showering him with cash.

jamie_dimon

If you make a big show of punishing someone, and when you’re done they still don’t think they have a behavior problem, you probably picked the wrong punishment. Every parent on earth knows this implicitly — but does the Obama White House finally get it, too, now, after Jamie Dimon’s raise?

When the board of JP Morgan Chase gave its blowdried, tirelessly self-regarding CEO a whopping 74 percent raise — after a year in which the Justice Department blasted the bank with $20 billion in sanctions — it was one of those rare instances where Main Street and Wall Street were mostly in agreement.

Everyone from the Financial Times to Forbes.com to the Huffington Post decried the move. The Wall Street pundits mostly thought it was a dumb play by the Chase board from a self-interest perspective, one guaranteed to inspire further investigations by the government. Meanwhile, the non-financial press generally denounced the raise as a moral obscenity, yet another example of the serial coddling of Wall Street’s habitually overcompensated executive class.

Both groups were right. But to me the biggest news was how brutal an indictment Jamie’s raise was of the Obama/Holder Justice Department, which continues to profoundly misunderstand the mindset of the finance villains they claim to be regulating.

Chase’s responses to Holder’s record penalties have been hilarious. Their first move was to make sure people outside the penthouse boardroom took on all the pain, laying off 7,500 employees and freezing salaries for the non-CEO class of line employees.

Next, Chase’s board members sat down, put their misshapen heads together, considered the impact of this disastrous year of settlements, and decided to respond by more than doubling the take-home pay of the executive in charge, giving Dimon about $20 million in salary and equity.

In the end, the fines left the decision-making class of the company not just uninjured but triumphant. Dimon’s raise was symbolic of a company-wide boost in compensation following the mass layoffs, as average per-employee expenses rose four percent overall, to $122,653, despite the $20 billion burden imposed upon the firm by the state.

There were a variety of reasons for the board’s decisions, but one of the big ones, according to various reports, was that bank honchos wanted to send a message to the government that it believed the company had been unfairly treated. This was a notion Dimon himself snootily trumpeted just before his raise was announced.

So Eric Holder and his lieutenants thought they were getting tough on Chase by dropping a monster settlement on the firm, but actually all they did was a) inspire the company to punish thousands of low-level innocent employees, while b) doubly- or triply-reinforcing the mass-narcissistic delusion gripping the company’s management that the bank’s serial ethical violations — which ranged from providing see-no-evil banking services, to Bernie Madoff, to rigging retail electricity prices, to covering up billions in losses in the “London Whale” episode — were the fault of someone else.

Apparently the bank’s board believed the Justice Department was simply caving in to anti-bank sentiment when it targeted Chase, not punishing real offenses. They seem to have decided their only “problem” was that the Justice Department lacked the political will to ignore the public’s irrational cries for action.

Again, if you punish a firm, and its executives come out of the episode convinced their only problem was an irrational PR issue, your enforcement strategy probably needs tweaking. It doesn’t exactly send much of a message when, mere months after you’ve imposed record enforcement penalties, the CEO of your target company is being led down Wall Street on a donkey, board members showering him with cash.

In contrast, when the LIBOR scandal blew up in England, British authorities essentially removed Barclays CEO Bob Diamond from office right away, in addition to levying fines and other penalties. We never heard about Bob Diamond getting a raise after LIBOR because as far as the world is concerned, there is no more Bob Diamond. He could be on the moon for all we know. It’s not jail, but it’s still more of a punishment than Eric Holder dropped on Chase and Jamie Dimon.

Moreover, when the Royal Bank of Scotland got caught up in the same LIBOR scandal, British and European regulators basically set up a base camp in the bank’s backside, forcing the company to disclose all of its dirty laundry via a merciless long-term cooperation agreement that has already led to the exposure of another major scandal, the foreign exchange manipulation case.

Meanwhile, in the U.S., Eric Holder drops a bunch of fines on the Chase corporate entity from 20,000 feet and then watches as bank leaders give themselves raises, force low-level underlings to pay the tab, and publicly denounce the settlements as undeserved. And get away with doing it.

Well done, Justice Department! Way to flex those biceps!

There is a school of thought that the massive fines should have worked, if only in the sense that they should have provided Chase with an incentive to avoid future investigations. Adam Hartung at Forbes put it this way, in his critique of the Chase board’s decision:

The Board of a troubled bank with billions in trading losses and billions in fines for illegal behavior decided to withhold employee pay raises, but double the CEO compensation, in order to snub the nose of the regulators who have been pointing out years of unethical, if not illegal, behavior?  The same regulators who might well see this very action as a good reason to heighten their investigations . . . ? This is some pretty tortured logic.

Yes, that’s tortured logic. But the whole point of this entire era of finance-sector corruption is that the leaders of these companies have not been logical. They’ve not only been depraved and antisocial from a corporate citizenship perspective, they haven’t even acted in their own commerical interest.

People like Holder still don’t understand that the leaders of these rogue firms have no problem blowing up their own companies and/or imperiling the world economy, so long as they continue to personally get paid.

Regulators have been blind to this for years, decades. It’s why the Fed, the OCC, the OTS, the Justice Department and a host of other agenices missed incoming icebergs like the AIG and Lehman disasters, once upon a time.

In fact, since the days of Alan Greenspan and his halcyon dreams of a future of pure self-regulation, the notion that corporate leaders will always act in the interest of their own firms – that they’ll behave according to the principled corporate egoism that was an article of faith both for Ayn Rand and acolytes like Greenspan – has been a core basis for broad policies of regulatory restraint.

Greenspan described his faith in corporate self-interest as the “whole intellectual edifice” guiding modern risk management. This edifice didn’t admit the even theoretical existence of the corporate executive who behaves with capitalistically impure motives, i.e. the executive who treats his publicly-traded corporation like a mobster treats a restaurant, as a mark to be taken over and burgled for personal profit.

But as we all know by now, when business leaders can get paid tens or hundreds of millions upfront for deals that take years to pan out (or not), when personal compensation isn’t tied to the long-term performance of the company, executives will tend to leverage their firms to the hilt in search of short-term profits, and they won’t think twice about zooming past safety thresholds. This is irrational behavior from a corporate perspective, sure, but totally rational from a personal-greed perspective.

For instance, the men who ran Lehman Brothers, or the unit of AIG that sank that company, each walked away with hundreds of millions, rich forever. Angelo Mozilo pulled $132 million out of Countrywide in 2008 alone, even as all the rotten subprime loans he’d written over the years were collapsing and his company was losing $704 million that year.

Ultimately even Greenspan conceded that individual greed trumps corporate greed. “Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity,” he told the House after the 2008 crash, “are in a state of shocked disbelief.”

So even Alan Greenspan figured this out eventually, but apparently Eric Holder and Barack Obama still haven’t caught on. They decided last year to make a big show of punishing JP Morgan Chase as a symbol of bank corruption, then forgot to punish the actual people who oversaw the bank’s misdeeds. This is a little like trying to rein in a class bully by halving his school’s budget. It doesn’t work. Crimes are committed by people, and justice has to target people, too. Or else the whole thing is a joke, as we found out last week.

About the author

Matt Taibbi is an investigative reporter for Rolling Stone magazine

SOURCE:  http://rollingstone.com/taibbi