Sunday, October 26, 2008

Update: Foxes (from yesterday)

Two more links of interest:


Banks “We have better things to do with that money you gave us than lend it out”

The US has shoved 5 trillion dollars at this problem since the crisis started last year. Enough is enough. Money alone is clearly not sufficient, and that means more stern measures need to be taken. The financial industry, whose hubris is so great they just announced 70 billion of bonuses for themselves after getting a taxpayer bailout, needs to learn that they exist for the purpose of serving the overall economy, not themselves. This is especially true of banks, whose entire business model relies on the government giving them the right to create money, to borrow money at concessionary rates that no one else receives, and so on. Banks are entirely creatures of the government who exist because the government gives them what amounts to a license to print money under certain circumstances. They are in no way a "naturally free market".


Bailout Free-For-All: Companies Line Up For Cash,8599,1853819,00.html?iid=digg_share?iid=perma_share


OK then...

That first link is going to seem like capitalist heresy to many Americans because they still think that saving the "free market" is the agenda. Sadly, the very necessity of any kind of bailout proves that a "free market" doesn't exist and never will and that any unrestrained capitalism will fail because of human greed.

The second link is proof of that greed even in the midst of crisis. Every hand is out, and the most shameless of all are those of rich people.

"Free money? Gimme...!"

That's why Warren Buffett bought preferred stock. He wants to be sure that when profits are to be had he gets paid first. That's how they are - even when they are as rich as blazes, it's never enough.