“Whatever happened to creative destruction?” That’s the question Sean-Paul at The Agonist asks in response to news that Bear Stearns, the nation’s fifth largest securities firm, is getting an emergency bail-out from the Federal Reserve.
It really is socialism for the big boys but cutthroat capitalism for the little people in this country. In my opinion, Bear Stearns, more than any other firm on Wall Street should be allowed to fail. No handouts, or bailouts from the Fed. If this were 1998, well, we all know what happened when Bear declined to aid in the bailout package of LTCM. So, that’s one reason. But the other is this: the more the Feds prolong a real shakeout the worse it will be when it finally comes.
Democratic efforts to provide universal health care are decried from the right as “socialized medicine,” but for some reason we hear nary a whimper from the free market ideologues when banks and brokerage firms are propped up with billions of dollars of taxpayer money. Sign the dotted line on a predatory, sub-prime mortgage, and you’re told to live with the consequences of your mistake… but blow tens of billions of dollars buying high-yield — yet worthless — sub-prime loans, and the Fed rides to your rescue.
Huh. Who exactly are the socialists?