Saturday, September 20, 2008

a couple of thoughts on the partial nationalization of the american financial system

Hey, how does it feel to own a share of a trillion-dollar fund owning mortgage-based securities? Pretty neat, eh?

Couple of thoughts. If a Democratic administration had done this, how many nano-seconds would it take for Fox News and the rest of the right-wing noise machine to scream "socialism"?

Colbert King, who was a banker (I didn't know that) writes about the geniuses who run (ran) companies like Lehman Brothers and AIG, "Show those high-flying financial types the door and make them jump without golden parachutes and fat pensions. Hard landings for them all."

He's right. Better yet, go back into recent years and confiscate their absurd, self-selected bonuses.

Steven Pearlstein, who calls the activities this week "Historic. Breathtaking. Revolutionary", writes "When we look back, we may find that this crisis, like Katrina, was a turning point in public perceptions and expectations of government -- about its competence in dealing with the inevitable crises that occur and its ability to take steps ahead of time to assure that the damage is limited and the most vulnerable are protected."

Interesting point. Will this help undermine in voters' minds belief in the mendacious Reagan-Gingrich-Bush/Rove mantra that "...government is the problem and that markets always know better than regulators and politicians"?

I hope so. Not to say the market is always wrong - of course it isn't, usually. But there are a lot of people, even on Wall Street, who wish they hadn't gotten all they wished for in Phil Gramm style financial deregulation now.

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1 Comments:

Blogger Black Political Analysis said...

It's totally a shame that the American public has to swallow the losses of greedy brokers. A banker robs a bank for a $1000 and gets 20 years, these brokers costs Americans a trillion and get nothing.

12:41 AM  

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