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| | lame duck
 
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Udderly ridiculous
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| I wasn't referring to the FDIC 'bailing out' IndyMac, which isn't really a bailout as much as its an insurer (FDIC) paying out that which was insured (bank accounts). I was referring more to the likes of Bears Stearns being 'bailed out' by the Federal Reserve (at JP Morgan's benefit). Though, for Fed. Reserve bailouts, you can go at least as far back at 1998 with Long Term Capital Management. I don't know what else and don't feel like researching it.  My comments were more towards Treasury Secretary Paulson's recent comments last week.
My point is... if I create a small business, say... milking radioactive cows, and my business fails, will the Fed. Reserve bail me out? Of course not. As they shouldn't. The only difference between my business and a huge banking institution, or Congress talking about bailing out Mortgage companies, is the scope of the business and maybe some of it is the wealthy taking care of the wealthy. Which seems to happen with coincidental regularity if its a banking institution, as opposed to Ford, GM, airlines, etc who probably cause MORE harm to the economy than a Bears Stearns failing. Assuming the CEO of Bears-Stearns stays out of prison, hehe, will he be in poverty with the collapse of that corporation, you think? No way. So again, when did the U.S. become socialist as far as bailing out the big corporations and while ignoring the small guy.
Will they in-turn socialize big businesses' gains, or just their losses?
The reasons that Secretary Paulson states are true. Small homeowners as a whole, were irresponsible and took too much risk, and as a capitalist country, we probably *should* let them fail. But.. it should be the same story when private banking or mortgage institutions fail.
Some of the reasons I've heard about Congress talking about bailing out Mortgage companies is because it might drastically increase the costs to buy a house. Which... won't that eliminate much of the smaller guys getting into mortgages they have no business getting into? Which is part of the cause of these corporations failing, along with their own irresponsibility? Supply and demand will take care of the rest. Capitalism works.
If homeowners and mortgage companies were foolish, why bailout the big business and ignore the little guy? To be clear, I think they should let them both fail. |
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Edited: 7/13/2008 2:18 AM by Nuclearcow |  |  |
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Elite Pathogen
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Udderly ridiculous
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| So again, when did the U.S. become socialist as far as bailing out the big corporations and while ignoring the small guy. -Since when did that become socialist? Taxpayers paying for a private party's company failing? What is that then if not socialism? Is it closer to pure capitalism if the government bails a private individual out? Democracy or Representation if no one voted for this to occur, but it just starts happening without the people's consent? Without the Presidents, Congresses, or the Supreme Court's consent in some of the cases with the Fed Reserve?
No, its not pure socialism, but when some private individuals can be irresponsible and face little monetary consequences because the tax payers will all chip in for their loss, thats hardly anything else I can think of. |
--
"For in the final analysis, our most basic common link, is that we all inhabit this small planet, we all breathe the same air, we all cherish our children's futures, and we are all mortal. "
-- John F. Kennedy
"Watch your thoughts; they become words. Watch your words; they become actions. Watch your actions; they become habits. Watch your habits; they become character. Watch your character; it becomes your destiny."
--Patrick Overton
"It doesn't matter where you are as much as where you are headed."
--Mike Shanahan | | | |
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Designated Norwegian
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| Nuclearcow (7/14/2008)
So again, when did the U.S. become socialist as far as bailing out the big corporations and while ignoring the small guy. -Since when did that become socialist? Taxpayers paying for a private party's company failing? What is that then if not socialism? Is it closer to pure capitalism if the government bails a private individual out? Democracy or Representation if no one voted for this to occur, but it just starts happening without the people's consent? Without the Presidents, Congresses, or the Supreme Court's consent in some of the cases with the Fed Reserve? No, its not pure socialism, but when some private individuals can be irresponsible and face little monetary consequences because the tax payers will all chip in for their loss, thats hardly anything else I can think of.
-Corporatism. |
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"Only two things are infinite, the universe and human stupidity, and I'm not sure about the former."
-- Albert Einstein (1879-1955) "The belief in a supernatural source of evil is not necessary; men alone are quite capable of every wickedness."
-- Joseph Conrad (1857-1924) With or without religion, you would have good people doing good things and evil people doing evil things. But for good people to do evil things, that takes religion.
--Steven Weinberg(1933- )
       
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| | lame duck
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Udderly ridiculous
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