The United States of America is now a de facto socialist nation. That may seem like hyperbole, but there’s more than enough evidence to suggest that it’s true. Look at the definition of socialism from that font of all knowledge: Wikipedia: Socialism refers to a broad set of economic theories of social organization advocating public [...]
Former Clinton-era Secretary of Labor Robert Reich argues in the TPMCafe that the bailout culture is “lemon socialism”: America has embraced Lemon Socialism. The federal government — that is, you and I and every other taxpayer — has taken ownership of giant home mortgagors Fannie and Freddie, which are by now basket cases. We’ve also [...]
The financial services bailout bill just failed to pass the House with a bipartisan rejection The bailout bill was a turd sandwich, but it was a necessary one to keep the markets from going into an absolute freefall. Which, coincidentally, is what’s going to happen now that the bailout is unlikely to happen. I can [...]
The Fed is going to bail out AIG. Scratch pretty much everything I’ve written—apparently the price of failure is now a nice government bailout. This is a phenomenally bad precedent, even if it saves the markets some short-term pain. UPDATE: Jim Cramer was pushing for an AIG bailout tonight. If AIG had gone down, would [...]
