Naomi Klein on Real Time tells us what is really going on

Klein: The disaster is far from over. They’ve actually just relocated. The disaster was on Wall Street and they have moved the disaster to Main Street by accepting those debts and you said they didn’t have to bomb, the bomb has yet to detonate. The bomb is the debt that has now been transferred to the taxpayers so it detonates when, if John McCain becomes president in the midst of an economic crisis and says look we’re in trouble, we have a disaster on our hands, we have to privatize social security, we can’t afford health care, we can’t afford food stamps, we need more deregulation, more privatization. The thesis of the Shock Doctrine is you need a disaster to rationalize these very unpopular policies so the real disaster has yet to come.The real disaster is the debt that is going to explode on the American taxpayers. And then they do economic shock therapy.

They had to step in, but I don’t think they had to step in in the way they did. The reason why the stock market went up on Wall Street today is because it’s Christmas morning. Imagine waking up and being told your credit card debits have been wiped out, your mortgage has been erased. There’s a fairy godmother that has taken care of you. A guardian angel. But actually that’s the tax payers.

With a smirk, Andrew gets pissed and chimes in

Sullivan: You’re favoring nationalizing the other companies.and most industries?

Klein: No, I’m just saying. This is socialism for the rich.

Maher: Why are you so hostile towards this?

Sullivan: Because I think the fundamental thesis that she is proposing is wrong. I think the reason why we’re in this situation is not demonizing a few individual companies, it’s systemic. And part of the reason we have this is the American People. The American people since the 70’s have had stagnating income, so they decided to get something for nothing. And the government never told them they couldn’t. So we have the stock bubble of the 90’s and now we have the real estate bubble in the 2000’s.

Klein: That’s not why we have this.

Sullivan: And the government never told them they couldn’t. Wall Street is to blame for giving these people these loans, but no one is ever forced to take out a bad load they cannot pay.

Klein: The reason why this bubble was allowed to inflate was not that the American people demanded it, it was spectacularly profitable for Wall Street. Just in bonuses last year, they handed out 33 billion dollars in bonuses… The problem is we have crybaby capitalism where when the times are good they are preaching deregulation and when the times are bad they want the bail-outs. The problem I have with your argument is where is this ideal capitalism of which you speak?