Bailouts

by Richard on May 31, 2011

Lansbury’s Lido has a cartoon which captures the reality of the bank bailouts. As he says: “The rest of us can go to hell as long as the capitalist system is kept safe.”

{ 13 comments… read them below or add one }

1

Chris H 05.31.11 at 8:45 am

Would Rob Bell disagree?

2

Richard 05.31.11 at 9:11 am

Who can tell? But if he does, he’s wrong. ;)

3

Pamela 05.31.11 at 10:36 am

Filthy lucre.
I’ll be bartering at my next visit to the shoe store.

4

Richard 05.31.11 at 10:59 am

Let us know how you get on ;)

5

Phillip Mutchell 05.31.11 at 11:47 am

On the environment/technology this is a great link from experimental theology http://www.nytimes.com/2011/05/29/opinion/29franzen.html?_r=1&pagewanted=1&ref=general&src=me

6

Paul F. 05.31.11 at 7:14 pm

“The rest of us can go to hell…”

Correction: not “can go”. It’s “have gone”.

7

Earl 05.31.11 at 8:13 pm

“Correction: not ‘an go’. It’s ‘have gone’.” Hum… speak for oneself! ;)

8

Pamela 05.31.11 at 11:14 pm

Reply to #4:

Bartering price: One personal confidence in exchange for a pair of peep-toe kitten heels.
Too high a price. :)

9

Richard 05.31.11 at 11:22 pm

;)

10

Simon 06.01.11 at 11:45 am

Meanwhile, in this story regarding a large care home provider, Stephen Dorrell MP says

Health Select Committee chair Stephen Dorrell MP said the government needed to make sure there was no interruption in care for Southern Cross residents, but said it should not consider a bail-out of the company.

“It doesn’t seem to me that it’s the taxpayers’ job to fund the losses that have been suffered by the people who have invested in Southern Cross; that was their risk and it’s their loss,” Mr Dorrell told the BBC.

Still, it’s not as if anyone needs a care home is it?

11

Earl 06.01.11 at 2:04 pm

The cartoon expresses only the politics of the artist rather than any reality economic or otherwise.

12

Richard 06.01.11 at 4:41 pm

I might be tempted to reply that Earl’s comments express only Earl’s politics rather than any reality economic or otherwise.

I won’t, of course.

13

Earl 06.01.11 at 6:41 pm

“I might be tempted…” etc. I first thought to make no comment. Then I decided to go ahead regardless of response. The comment made was purposed to point out that the comment of the cartoonist was not holy writ but simply their opinion driving by their own politics.

The last few years have seen unprecedented government bailouts of private capitalized businesses all with the excuse that those businesses are to big to allow them to fail. I have always argued that they were to big to not allow to fail. Investors have to be allowed to gain or loose. Otherwise the market is artificially supported. It is as unwise as providing subsidized insurance for those who build on a flood plain. The result of such subsidize is construction that will be lost to natural patterns of flooding, etc. as well as further damage that results from (usually) publicly funded flood control projects as well as river channelization projects, etc. In the United States it is very debatable that federal rescue of GM, etc. was at all advisable. Investors should have been required to absorb their loses. Rescue of any business was not a legitimate task of the federal government. To saddle taxpayers with such a future burden to protect current investors, regardless of if they be institutional or individual is an act that now threatens the economic future of our children and grandchildren. The hyperbole and emotion that drove such error is without excuse. Businesses fail all the time. In the United States, Plymouth, American Motors, Oldsmobile are all gone. Other companies took their place. Exactly the same would have happened in the case of Wall Street, etc. Since 1985 many banking institutions have been bought, etc. Many no longer exist. It is best for such institutions to stand on their own and success or fail on their own. The taxpayer has no obligation to rescue them. It is bad for business. It is bad for the economy. It is bad for the taxpayer. But, as long as people can get politicians to give them other people’s money to get them out of trouble of their own making, they will continue to do the very things that get them into trouble and then turn to politicians for help.

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