Crony Capitalism

From Bloomberg:

…Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages. The largest borrower, Morgan Stanley (MS), got as much as $107.3 billion, while Citigroup took $99.5 billion and Bank of America $91.4 billion, according to a Bloomberg News compilation of data obtained through Freedom of Information Act requests, months of litigation and an act of Congress…

Describing it as an effort to stave off depression is being overly generous…though, giving the benefit of the doubt, Bernanke, himself, might have thought that is what he was doing.  The reality is that a bunch of well-connected banks gambled, lost and then were bailed out by the taxpayers.  The whole effort, in reality, was to ensure that those at the top of the financial industry heap didn’t pay the price of their folly…and they managed to get all that money because, as I’ve said, Big Government and Big Corporation are two sides of the same coin…they are run by the same people and have the same basic worldview:  the people are lunch.

We have to ensure that in the future no one ever falls for “too big to fail”.  If a corporation has screwed up, then let it fail.  In this, there is a gigantic issue we Republicans can run on because, right now, Obama and his Democrats are hip deep in this nonsense.  There was no fundamental difference between the bail out of GM and the bail out of Morgan Stanley…both were run by idiots who deserved to lose and both were bailed out because of excellent political connections.

We can tie the whole nauseating mess in to a neat, little package and explain to the American people that the “Bigs” have to go, because both of them are bad.  Thing is – do we have the courage to do it?

4 thoughts on “Crony Capitalism

  1. Feel the Fang August 22, 2011 / 1:29 am

    “We can tie the whole nauseating mess in to a neat, little package and explain to the American people that the “Bigs” have to go, because both of them are bad. Thing is – do we have the courage to do it?”

    You know that old saying. If you have to ask the question, you know the answer.

  2. bozo August 22, 2011 / 7:51 am

    You had me cheering along until you suddenly lost your mind and claimed Republicans are the answer, even though BOTH GM and Morgan Stanley happened under a Republican executive who went on tv and scared the bejeezus out of America to give Paulson all the money with no accountability months before Obama took the oath.

    This is not Republican vs Democrat. It’s mega-millionaires vs.everyone else and everyone else is losing. It’s class warfare with the lower 95% refusing to take up arms against billionaire aggressors. Do we have the courage to eject the “Bigs”? Not if you keep turning cheeks, and just keep forgiving them for destroying democracy. Eventually they’ll let you play with the lions.

    • neocon1 August 22, 2011 / 8:18 am

      blowzo

      FDR,LBJ, jimmah all socialists, all big spenders agg big govt.
      Truman Korea, JFK viet nam
      trillions wasted in the “war” on poverty with NO results but thievery.
      trillions wasted on the war on drugs with NO results but militarized police forces.
      all at the hands of the donk/communist party.

      • neocon1 August 22, 2011 / 8:20 am

        blowzo

        fanni-fraddi ?

        thank the gay lovers raines and fwank and the black CBC for giving them the cover of raaaacism, by the racists.

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