Conservatives say that government is useless and that the private sector is the only way to solve economic problems. They are wrong and they are destroying the economy.

We are betrayed by elected politicians and the fool economists they slavishly follow.

In The Monster, Michael Hudson gives us a detailed account of the how Roland Arnall created Ameriquest and made it into the giant of subprime lending. In the process the book implicates the major Wall Street firms, most importantly Lehman, who eagerly packaged junk loans into mortgage backed securities and more complicated instruments. He also notes the corruption of the three major credit rating agencies, who received big fees for giving these assets investment grade stamps. The list of aiders and abettors includes Massachusetts Governor Deval Patrick, California Governors Grey Davis and Arnold Schwarzenegger, and even the community group ACORN.

Quantitative easing hurts small savers and retirees. It might work, and it’s the only thing left, since the conservatives won’t use fiscal policy. Let’s hope it works, because it is hurting a lot of people who did not cause the Great Crash.

This is my response to the question of what Obama could do now to address the country’s current problems, without the need to pass a bill through Congress.