Tuesday, July 15, 2008

The Death of Reaganomics

Who would have thought it?

Reaganomics was a farce and it's finally shown itself to be not working.

We were always told that all that was needed was "less regulation, less regulation and less regulation" because "the market" would sort everything out.

There were, of course, many of us who thought this was empty right wing rhetoric disguising itself as policy.... and then along comes the subprime mortgage crisis and suddenly we are hearing the self same people who applauded Reagan saying that... we need more regulation of financial markets.

It turns out greedy bastards don't self regulate at all, they are simply greedy bastards.

Who could possibly have seen that coming?

UPDATE:


This guy gets it. It's privatised profit and nationalised debt. God forbid that any of these brave fiscal warriors should ever lose any money. The poor lose their houses, but shareholders mustn't lose a dime.

Instead of propping up Fannie Mae or others, the threatened firm should be formally nationalized as a nonprofit federal agency performing valuable services for the housing market. That is the real consequence anyway if the taxpayers have to buy up $300 billion in stock.

The private shareholders "are walking dead men, muerto," Institutional Risk Analytics, a private banking monitor, observed. Make them eat their losses, the sooner the better.

Click title for source.

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