While you were enjoying Sunday football, working or whatever else was on your plate, the nationalization of the financial sector ramped up even more. From Calculated Risk:
This is a wild day for the financial markets. Here is a summary post (scroll down for actual posts):
1) Lehman is expected to file bankruptcy before midnight ET.
2) AIG rejected private equity investment and has asked the Fed for help. A restructuring plan will be announced tonight or early tomorrow morning.
3) BofA bought Merrill Lynch for $29 per share in stock.
4) The Fed has expanded its lending facilities, including accepting equities.
So the next right-wing moran who writes a letter to the editor calling Barack Obama a socialist deserves to be flogged with some worthless paper. Maybe someone has some old junk bond certificates.
The invisible hand isn’t confining itself to your pocket any more, folks. It’s all fun and games to have dogmatic stink tanks push privatization and deregulation schemes while times are good. Now we’re all going to reap the bitter fruit of a financial system that was allowed to wallow in corruption.
While the ridiculous and false charge that liberalism is socialism became a form of conventional wisdom in this country, the actual fact of conservative delusions about how to ensure efficient markets has been largely ignored.
The Republican “realists” who are such dedicated experts on sex crimes overlooked a basic fact of human nature: given the opportunity to rob people blind, a certain number of people will do so. And when this leads to a competitive advantage, as it did with the mortgage industry, it should be obvious that the pressures to cut corners will mount even in reputable firms. Throw in some Ponzi-type investment products and inscrutable accounting procedures, and voila, it’s 1987 all over again.
Now we have no choice but to bail the whole thing out. Again. At the same time Republicans put forth their boiler-plate rubbish about smaller government and less regulation, the American people will be witnessing a financial mess of truly epic proportions.
I’ve locked the crystal ball in a safe deposit box in an offshore bank, but the cognitive dissonance between what Republicans say and what they do could cause a rip in the Sarah-McCain continuum. It’s all moose hockey now.
The big question is whether we ever get a government that will make policy to benefit the entire population instead of a select few. You know, since we’re paying for it and stuff.