Friday, October 03, 2008
We are all Socialists now. Congress just sent Bush a $700 Billion check that he signed before giving it to former Goldman Sachs CEO and current Secretary of the Treasury, Hank Paulson. Presumably, he will use the money to clean up the big shitpile, also known as "toxic assets."
Suddenly it seems everyone is a regulator and fingers are flying fast and furious. The most absurd is blaming the Community Re-Investment Act forcing banks to lend to minorities and "other high risk individuals." I'll not even debate such absurd claims made by people who have no idea what they are talking about. This does put a period, nay a tombstone, on the republican mantra of de-regulation.
I have often wondered why those who do not believe in government desire public office.
What is needed now are serious and reasonable government regulations of our financial industry. This massive bailout bill should forever stifle those claims of evil government versus good markets. Those screaming the loudest about the evils of government were screaming the loudest for a bailout.
Say it with me. Government does have a role to play regulating the financial sector.
After the great depression very serious people with a very serious mission looked at this issue and decided a firewall must be erected between commercial banks and investment banks and insurance companies. This firewall was removed during the waning years of the Clinton administration, coupled with several other deregulating measures.
The result is a seven hundred billion dollar shitpile fed to the American taxpayer. Enjoy.