Succinct, thorough explanation of economic crisis & why Obama can't & won't reform the system.

If you want a succinct explanation of why the economy went south and why Obama's hands are tied to do anything about the outrageous unemployment levels in this country, I encourage you to watch this interview with Yves Smith, who is the brilliant, no-bullshit brains behind the blog Naked Capitalism.

The interview, which appeared on the Canada-based Business News Network, and which begins at about the 5:00 minute mark of the linked segment, also provides insight into the facilitating role performed by mainstream economists since as early as 1980, in inventing, espousing and legitimating the phony, casuistic, and rhetorically scientistic rationale for pursuing economic policies that precipitated the crisis.

She furthermore comes right out and says it: the Obama Administration can't and won't reform our broken financial system because it is beholden to Wall Street. According to Ms. Smith, Obama received more campaign funding from the financial services industry than any previous presidential candidate (adjusted for inflation, etc., presumably).

Obama's financial advisers are, as we all know, the same dudes who escalated the crisis in the first place. They also were among the 'experts' to give the guilty policies their gloss of scientism. But it doesn't really matter who they are, because no 'expert' -- no matter how glossy his gloss, no matter how dizzyingly rational-seeming and science-evoking his numbers and graphs -- can match the heft and gravitas of the thunderous basso profundo of the Almighty American Dollar.

Ms. Smith has written a book that looks interesting -- I mean, considering that it's economics and everything -- called, Econned: How Unenlightened Self Interest Damaged Democracy and Corrupted Capitalism. She's smart, and we like her here at Crib From This.

Crib From This unveils titular 'depression' reference #2.

I seriously wish I were exaggerating in using the 'D Word'. And I hope it turns out that I am.

I, doubtless like many others, have for the last couple of days been conducting a self-education in economics in order to better comprehend various of the enormous ongoing fiscal crises. I have been scurrying around, to and fro, hither and thither on the Web site of The Wall Street Journal, CNN Money, and also some instances of financial bloggery. It brings me no particular joy, but hey, even Karl Marx had go about the ugly business of teaching himself economics...

One Web site / blog that I have found to be exceedingly instructive not only for its candor -- the Federal Reserve, the Executive and Legislative Branches and the media have been drastically understating the severity of the situation in order not to cause panic, mass liquidations of accounts, etc. --, but for its lucidity. It's called Naked Capitalism, and I cannot recommend it highly enough. It's hype.

So, I would like to recommend a few of items that have been posted today on Naked Capitalism, items that are characteristically candid and lucid. Here's how I'll give it to you: I've got good news and bad news.

First the good news: there isn't any.

And the bad news is:

1) The Fed's bailout of AIG to the tune of $85,000 has done nothing to slow the downward spiral of the credit markets (the mysterious, opaque, unregulated markets I blathered about in my previous post).

2) On the basis of a strange article in The Chicago Tribune, Naked Capitalism contributor Yves Smith expresses concern that Ben Bernanke, the Chairman of The Federal Reserve, has no idea what he's doing.

3) Morgan Stanley appears poised to take a cue from Lehman Brothers. Which is to say, tank.

4) Or possibly a merger with Wachovia? And Washington Mutual (a.k.a. WaMu) is likely to tank any day now.