In the Untied States our quasi-socialist economy has just become even more socialist
In Russia they at least take profitable businesses into conservatorship.
Really, it’s the fed being somewhat honest here (even though they’ll blame it on the market). Fannie and Freddie have always been federally-owned, despite the illusion of “privatization”. Fannie and Freddie have been the federal reserve system’s mortgage arm. And now they’re going to be bailed out, wrecking the economy with 20%+ inflation.
Hey BAAWA, how did you get to that number?
Perhaps a spike in Advil sales will help the economy recover? [H]
There was a website I saw recently which included M3 in the inflation #'s and it was something like 9 or 15% inflation. Figuring that a massive bailout will be done by printing more money, I just used a larger number. It’s strictly a guess, but with that much money that quickly, it will shock the system.
The US can’t even run a plutocracy right.
It’s true that Freddie and Fannie were always fed sponsored, despite the privatization. In that sense, this is not all that different. But whereas they used to lend only to a narrow group of borrowers, now they completely dominate the market. That is why this is significant and tends toward nationalization as versus just intervention.
Incase anybody has overlooked the real problem with all of this:
It seems that a key sector of the economy has become dominated by institutions that are considered too important to be allowed to fail.
But a meaningful definition of capitalism is impossible without the possibility of bankruptcy. Without the threat of such an economic sanction there would be no reason for banks to hold any capital at all, and they would even be fools to do so.
The currently adopted government measures are probably a necessary stop-gap, but longer term I don’t see any obvious way to address this problem other than vastly increased regulation (and then we really would have something like the Socialist Enterprise sat smack bang in the middle of our system) or a major restructuring of the entire financial industry on an entirely different basis.
I have to admit that I’m chastened. I had always regarded you gents as a quaint little sect with some clever and interesting ideas. But it looks like you might have a great future ahead of you!
m.
Gee thanks. We’re here just for you. You know that. All for you. Because, you know, you’re just epic win like that.
Somebody riddle me this: Why do US stocks surge after this “bailout”. Do people really not understand the consequences of this?
Whom do you think will benefit first from the bailout?
No clue, but I suspect it’s those that orchastrated the bailout that stand to benefit. Sometimes having connections is more valuable than being in the black for some folks.
Gold has doubled in 5 years. 100 percent divided by 5 years equals 20 percent per year.
True money supply shows about 16-17% per year.
People trying to unload their dollars?
ZOMFG, you missed high school math? That would be 14.87% annually.
ha! oops
Next is the healthcare system.
It should not be long until the car companies are nationalized. They are going to the government asking for a $50 billion bailout. We cannot let car companies go out of business, Americans need cars.
We will next have to nationalize the airlines. We cannot do without flying in our country.
Next will be farms. The government will have to make sure food is available for all. And they just got a $300 billion bailout.
So on and so forth. The entire economy will have to be nationalized, because like my mom says, government officials are like our parents, and care for us. Even though she recognizes that they are in bed with big business, she cannot give up the control that government has. Like most people, I think she has a defective brain.
The word you’re looking for is kleptocracy.
The word you’re looking for is kleptocracy. LOL!