[ExI] AIG Bail out

Techno neptune at superlink.net
Thu Sep 18 23:43:56 UTC 2008

On Thursday, September 18, 2008 9:09 AM "Stathis Papaioannou" 
<stathisp at gmail.com> wrote:
> 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.

Well, to be sure, the current financial crisis seems to clearly be the 
result of government backed credit expansion plus specific regulations aimed 
at canalizing certain types of investments and the overall climate of "the 
federal government will bail out the biggest risk takers."



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