I Get the Best Emails - Ongoing
To: Kate
From: Steve
Subj: Dow's Doomsday Dumpster Diving
With Lehman Bro's not being bought out, I expect all of the other "private equity firms*" are going to be nearly liquidated by their investors... not, perhaps on the scale of the Bank Run of 1929, but close I suspect. But don't worry, we the taxpayer will come to the rescue... and it will be roundly and rightfully criticized by both left and right, because the problem was self-inflicted in the first place.
* Private in the sense, without government regulation they were allowed to lie (i.e. cook the books). Of course "we" the perpetually suckered taxpayers are going to subsidize the loss... but of course, reap no benefit if they profit. Good gig, if you can get it. Free Market as long as profits are rolling in, socialized coverage of risk, in case, um, you know loss.
posted by kate @ 4:08 PM
8 comments
8 Comments:
Of course "we" the perpetually suckered taxpayers are going to subsidize the loss... but of course, reap no benefit if they profit. Good gig, if you can get it. Free Market as long as profits are rolling in, socialized coverage of risk, in case, um, you know loss.
That would be true only if the government did bail out Lehman Bros. They didn't. What you are describing is the bail out of the government sponsored "private" corporations of Fannie Mae and Freddie Mac. And guess who was the second highest recipient of campaign contributions from those two corporations over the past twenty years: Barack Obama (Chris Dodd was first on the list but he's been in the Senate the entire time; BO made up for lost time considering he's only been there for two years).
The fact that Obama has taken so much money from lots of people and/or companies is disturbing, but are you suggesting that he's somehow responsible for the gov't bailing out Fannie and Freddie?
Not at all. A single senator couldn't possibly be held responsible for the Fannie/Freddie bailout. Although, the fact that he took all that money in two short years makes you wonder where his allegiance lies.
How about adressing my first point. Lehman Bros wasn't bailed out. I don't see how the Lehman Bros bankruptcy is a "socialized coverage of risk".
cough, cough. Keating Five. cough.
I see the company declaring bankruptcy as a form of protection by "big government" which is subsidized by us, the taxpayers.
I can't speak for Steve, who originally wrote the email, but that's what I got from yesterday's news.
I mean, really, is anyone going to do time for the so-called greed that's damaging our economy?
That still isn't a "socialized coverage of risk in case of loss". The losers in the Lehman Bros bankruptcy are the owners of Lehman Bros(the stockholders), not the taxpayers. Bankruptcy doesn't protect the owners from anything.
John's right, Kate. Lehman wasn't a socialized takeover by the Government.
They were saving up for a big socialized coverage of risk in case of loss takeover of AIG! $85 billion for an 80% share. Cause, if the Free Market Uber Alles crowd has taught us something, it's that if there's one thing the government can do, it's run a business!
It always strikes me as funny how those who are constantly complaining about the teat of governmental regulation destroying the free market can't clamp their mouths on that titty fast enough when their own bottom line is being affected.
It always strikes me as funny how those who are constantly complaining about the teat of governmental regulation destroying the free market can't clamp their mouths on that titty fast enough when their own bottom line is being affected.
I totally agree. We don't have a totally free market. Those who benefit from the government, and their manipulations, are the first to ask for help (Fannie/Freddie being the most obvious example).
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