Thursday, September 18, 2008

The Socialist People's Republic of America?

A couple of insights on the Wall Street meltdown from McClatchey Newspapers:

"Once upon a time, the average American had to make a choice to invest on Wall Street. Now, all the average taxpayer has to do is wait around for the government to take over the latest ailing financial behemoth.

Last week, the feds placed wobbling mortgage giants Fannie Mae and Freddie Mac into conservatorship — effectively nationalizing the housing finance business.

..We are entering a new and unsettling phase in the relationship between government and business, one that neither sector particularly wants but cannot avoid. One result is that the line between public and private interests increasingly is being blurred so much as to become unrecognizable.

Nowhere is that more obvious that at Fannie and Freddie, two massive enterprises that combined their government-sponsored creation and backing with publicly traded stock. Fannie and Freddie were perfect fodder for the sort of mischief that privatizes gains while socializing losses."


Anonymous said...

If they're so impressed with these bailouts, wait until the military/industrial complex gets into trouble!

The Mound of Sound said...

Now that's where you're wrong Foot. America's mighty military industry can always find a ready market for its products. All it needs is an insane war or two every couple of decades and all is fine.