Friday, September 26, 2008

#82 The Bailout--the "Dismal Science" Gets Dismaler

No...I don't like it none.

First of all, as a Progressive Libertarian (or Libertarian Democrat or Left Libertarian or Quasi-Anarcho-Syndicalist maybe--I'll define some of this stuff sooner or later, I promise, dismally boring though it may be)--I'm enough on the Liberal side of the aisle (universal health-care, yes) to be all in favor of REGULATING financial institutions down to a fare-thee-well. This is simply a form of licencing, of policing entities that could pose a DANGER (fraud) to the public welfare--well within the parameters of governmental authority that we pay our taxes for. But OWNERSHIP? Nah...a little too Marxianish for me. Totally different color horse. Further, the bailout is touted as just a LOAN of sorts, wherefrom a profit might even be made "down the road." But really, we're BUYING--mortgages, notes, other assets and debits--which are subject to market vagaries like everything else. A pig in a poke.

Secondly, Who's getting the money? Not the most deserving, I'm afraid. CEO's and stockholders of these failed institutions are getting paid for failure. As if they haven't already been paid enough! To make the point, let's just look at some of those folks who got us in trouble in the first place, but got out before TSHTF and came up know. Here are some infuriating examples provided by the AP: CEO of Merrill-Lynch, $66M severance package one year before failure and takeover by Bank Of America; CEO of Wachovia, $5M golden parachute; CEO of Citigroup, $16M parting gift. Most recently and outrageously?--biggest-bank-failure-ever WaMu CEO gets bye-bye pay of $18M for three weeks' work! These guys should have been simply FIRED, or maybe just taken around back and fired AT.

That said, it looks like some sort of rescue measure will pass the Congress. long as they're gonna print some more money anyway--print some for me and mine while they're at it.

1 comment:

jdmiii said...

check out George Will recently wrote that McCain's temperament makes him unfit to serve. More on that temperament in the context of the proposed bailout is set forth below.