Friday, July 11, 2008

Socialized Capitalism is called Fascism

Fannie, Freddie, blah blah blah -- you don't need me to repeat what you've already read about their fates, and the fact that you sir, Mr. Taxpayer, will have to bail them out. Nor will I repeat the moaning moral outrage of those like Robert Reich who are shocked shocked to find that the government has loaded the capitalist dice in favor of the house, when in fact as the former Labor secretary he was involved in the process.

Marc Thoma however, seems to be a pretty smart and reasonable guy, and he expresses an opinion you can find in many places now, probably even in the mouths of your very own smart and reasonable friends.
On the too big to fail issue, my view hasn't changed. If failure of these firms endangers the broader economy, and hence threatens to impose large costs on people who had nothing to do with creating the problems, then policymakers need to step in and do what they can to prevent a downward economic economic spiral. In addition, they need to change the rules and regulations that allowed the problem to emerge in the first place, and add new rules and regulations as needed to lower the moral hazard worries going forward.
This stuff absolutely works me into a lather when I read it from someone I know means it seriously and with the best of intentions. Because well ... WHAT THE FUCK DO YOU THINK WE HAVE BEEN DOING FOR THE LAST CENTURY!!! Not to put to fine a point on it, but if any strategy has been absolutely, repeatedly and scientifically proven to be utterly, completely and totally doomed to failure it is the procedure recommended here. Please, I beg you, consider thinking about a different way of dealing with this.

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