Privatizing profit, socializing risk

[electricland]

"This is corporate welfare at its most blatant and most odious."

Here, have a prescient post from a year ago Thursday. (Except, as it turns out, the half-trillion figure is a little low.) I can't believe this subprime mortgage mess has been going on for a year.

I get why it's important to keep the financial system operating. I do, really. But it should never, ever have been allowed to get into this state in the first place.

(See also: The Liberal Media Hasten the Red Revolution.)

(Oooh, and also Glenn Greenwald. Who is angry. With reason.

Put another way, this authorizes Hank Paulson to transfer $700 billion of taxpayer money to private industry in his sole discretion, and nobody has the right or ability to review or challenge any decision he makes.

Thanks to archaica for the link.)

Comments

[jenlev.livejournal.com]

I'm trying not to despair. *headdesk*

[electricland.livejournal.com]

It makes me ill.

[jenlev.livejournal.com]

Air sickness bags all around I say. :::further headdesks:::

[pretentiousgit.livejournal.com]

Oh, deary, deary me. Yes. I quite agree.

[(Anonymous)]

Monkcomm sez:

You know, it's possible that the US treasury will make a financial killing on this deal. They're getting merchandise at deep discounts.

At the very least it's not like the whole $700 billion turns into nothing, much of it will come back to the government pretty directly.

[electricland.livejournal.com]

Discounted garbage is still garbage. I am not sanguine.

And it might not actually be enough of a discount. More here (http://krugman.blogs.nytimes.com/2008/09/23/getting-real/).