MURDER, POLITICS, AND THE END OF THE JAZZ AGE
by Michael Wolraich
By Noah Culwin @ NYMag.com, Aug. 10
A decade now after the 2008 financial crisis, the cultural and psychological imprint that it left looks almost as deep as the one that followed the Great Depression. Its legacy includes a new radical politics on both the left and the right; epidemics of opioid abuse, suicides, and low birthrates; and widespread resentment, racial and gendered and otherwise, by those who felt especially left behind. This week, New York continues our retrospective on the crash and its aftermath by publishing interviews with some of those who were closest to the events. Here, Steve Bannon, a former Goldman Sachs investment banker turned face of Trump-era populism, on how the bailouts led directly to the 2016 election, why we need to break up the banks, and his goal to turn the GOP into a worker-based party.
I was hoping we could talk about the legacy of the financial crisis. How would you characterize it?
The legacy of the financial crisis: Donald Trump. The legacy of the financial crisis is Donald J. Trump. And I can give you the specific moment: When they put Lehman in bankruptcy, and the geniuses didn’t understand that it was inextricably linked to the commercial paper market. Hank Paulson, Treasury secretary, and Ben Bernanke, the head of the Federal Reserve, they went to see Bush three days later. They told him, ‘We need a trillion dollars in cash, and we need it by five o’clock.’”And in a profile of courage, President Bush says, “Not my problem. You gotta go to Capitol Hill.” They go up to Capitol Hill, they put everybody in a room. They make them all put their BlackBerrys outside, and they walk in, and Bernanke, who’s not an alarmist, says, “If we don’t have a trillion dollars by today, the American financial system will melt down in 72 hours. The world financial system will melt down in two weeks, and there will be global anarchy.”
And by the way, this was completely brought on by the elites of the country and Wall Street. When I got to Harvard Business School in 1983, a bunch of professors were coming up with a radical idea that’s had a horrible negative consequence on this country and to the fabric of our society: the maximization of shareholder value; this was preached as High Church theology [....]