Monday, September 15, 2008

Fed Loosens Standards on Emergency Loans

Fed Loosens Standards on Emergency Loans... to INVESTMENT BANKS, not commercial banks. Oh, they're very careful not to call it a bailout - it's just an extremely high risk emergency loan secured by unstable collateral. So lemme get this straight, my republican friends... socialized medicine = bad, but socialized housing and socialized banking = good? This is no longer a free-market system but a uniquely American product of deregulation where profits are distributed among the wealthy and losses are distributed among the taxpayers. Whomever the next president is, they're going to have some serious work to do.

5 Comments:

Blogger Stew Magoo said...

You are completely, 100%, spot on correct. This sucks. It's the primary reason that I despise Bush. He's not a conservative AT ALL.

But he couldn't do anything without congressional approval.

I wish that America would wake up to the fact that if the government really wants to help, it'll get out of the way of free enterprise. Including the part where bad business decisions lead to a business going OUT of business.

8:29 PM  
Blogger -J. said...

Approval, yes, but Paulson is the policy architect - a Bush appointee. And getting out of the way of free enterprise is arguably what led to the mortgage crisis in the first place, yes? Regulations were either relaxed or simply ignored.

9:06 PM  
Blogger Stew Magoo said...

Agreed, Paulson is an evil, shortsighted pawn.

I disagree that the relaxation of the regulation led to the current problem. It was a combination of relaxation AND the implicit support of the government, ala corporate welfare bailout track record.

If we're going to regulate business, then regulate it. If it's going to be a free market, then let it be free.

Mixing the two SUCKS.

9:20 PM  
Blogger -J. said...

Ah, I see your point - they knew the safety net would be offered. True dat.

Wonder if McSame would ask Paulson to stick around...

10:00 PM  
Blogger Stew Magoo said...

He'll pick someone worse if it's possible.

10:02 PM  

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