[ExI] AIG Bail out

Stathis Papaioannou stathisp at gmail.com
Thu Sep 18 13:09:51 UTC 2008

2008/9/18 BillK <pharos at gmail.com>:

> This crisis is all down to an overdose of the free market.
> Bush did away with all the old boring banking regulations, 'cause the
> free market is great, isn't it?
> So all the greedy smart-alecs sold funny-money bonds to each other,
> pocketing millions in commission on every deal. Then borrowed more
> money using the previous funny-money bonds as security, more
> commission, more deals, more commission, until the whole pyramid
> scheme collapsed.
> They get to keep their commission and are put in charge of sorting the
> mess out, because they are financial wizards! It is the poor smucks
> lower down the scale that lose their homes, jobs and pensions.
> But it is going to be pretty traumatic to get all the funny-money
> shaken out of the system. At the moment nobody trusts anyone.  It will
> take years for trust to come back into the financial system.

Of course, this isn't a problem at all for the free marketeers, not in
the slightest. Bankruptcy, depression, starvation, paranoia: it's all
a necessary part of the process that weeds out the bad and promotes
the good.

Stathis Papaioannou

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