September 28, 2008

The slippery slope

Donald B. Hawthorne

First, they bail out the financial institutions.

Now, the automakers. More here.

Next, the homebuilders are clammering for their time at the taxpayers' trough.

Surely the airlines and other industries can't be far behind. Isn't corporate welfare grand?

All funded out of the hard-earned monies of ordinary citizens whose only "crime" was to pay their bills and not be connected to powerful lobbying interests in Washington, D.C. Hey, if all the ordinary citizens of America stopped paying any monies to the IRS, could we just call that the "average Joe and Josephine" bailout?

We have embarked on one heckuva slippery slope toward socialism.

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Is it too soon to call for full-scale revolution?

Posted by: Greg at September 28, 2008 4:05 PM

Does anyone know, how much does $1 of "loan guarantees" actually cost?

Posted by: Andrew at September 28, 2008 5:35 PM

What slippery slope-this is full scaled marxism. You notice the local commie blog has "not a peep" to say against the concept-just the details. They want it made worse.

Posted by: Mike at September 28, 2008 6:07 PM

Why wouldn't they be for it? It's incredibly simple.

"Well, we spent $700 billion bailing out the Wall Street fatcats. We feel that [INSERT AMOUNT HERE] billion is a small price to provide [INSERT SOCIALIST PROGRAM HERE] for all Americans..."

And most Americans will agree.

Posted by: Greg at September 28, 2008 6:46 PM

It wasn't Socialism that got us into this mess.
It was Cowboy Capitalism.
It is movement towards regulations on Krazy Kat Kapitalism that provides the cure for the disease.

Let's flip a phrase around. If you don't like it you are free to cast your lot with the Russian oligarchs.

Posted by: OldTimeLefty at September 28, 2008 8:29 PM

OTL, you're absolutely right. But as seen by the reaction to the Station nightclub here in RI, any action to prevent the mistakes of the past will likely result in a harsh regulatory over-correction that can result is just as much or more harm in the future.

Basically, we're doomed and Canada is looking nicer and nicer every year.

Posted by: Greg at September 28, 2008 9:18 PM

Make no mistake. What got us into this mess was not the absent of regulation but the existence of a large, bad regulation; namely, Bill Clinton strong-arming, presumably with Congress' help, mortgage companies into placing bad loans. Naturally, unqualified end buyers took advantage of this opportunity. In a different arena, banks, insurance companies and other investment institutions around the world bought up mortgage paper, good and bad. The bad paper was enough to tank some of them and cause this global capital freeze-up.

Without Clinton's do-gooder legislation, which was a notably onerous and ultimately very destructive regulation, none of this would have happened. Though Barney Frank, who ought to be led away in shackles, insisting along the way for several very selfish reasons that Fannie and Freddie were in great shape when he knew damn well they weren't certainly didn't help. (It's stunning that he has the nerve to say one word in the aftermath of a problem he helped create. Yet there he is, lecturing and flapping his gums like it was all someone else's doing. At least Chris Dodd has the decency to look worried.)

Posted by: Monique at September 28, 2008 9:21 PM

Greg, good point about the passage of reactive, oppressive regulations. This will probably also occur, in areas that really had nothing to do with the original problem, just so politicians can say they did something.

No one can do it better than Rhode Island, though. This afternoon, I stood across the street from a small market in Peace Dale; maybe 40 feet wide max. It had doors in the front and in the back and it was located (literally) across the street from a fire station. Yet the owners were forced to spend $40,000 on fire code compliance before they could open for business. Thanks, General Assembly, for completely missing the lesson of the Station Fire and further compounding the bad business atmosphere in this state. More importantly, thanks, Patrick Lynch, for failing to hold the responsible party(s) accountable, thereby encouraging a repeat of this tragedy.

Posted by: Monique at September 28, 2008 9:48 PM

Why did it take so long for President Bush and Treasury Secretary Henry Paulson to request the bail out knowing that the economy is all interlinked and global?

“Huge European bank fails

European financial giant Fortis partially nationalized. Three governments to pour 11.2 billion euro ($16.4 billion) into the bank.

Last Updated: September 28, 2008: 6:57 PM ET

BRUSSELS, Belgium (AP) -- Dutch-Belgian bank and insurance giant Fortis NV was given a 11.2 billion euro ($16.4 billion) lifeline to avert insolvency as part of a wider bailout plan agreed to by Belgium, the Netherlands and Luxembourg, officials said Sunday.”


Posted by: Ken at September 29, 2008 2:45 AM

I agree, Clinton helped Krazy Kat Kowboy Kapitalism. It doesn't change the problem which is Krazy Kat Kowboy Kapitalism.

Posted by: OldTimeLefty at September 29, 2008 12:19 PM
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