Capitalism on a slippery slope
07.11.08 (12:23 pm) [edit]Bear Stearns and now Fannie Mae and Freddie Mac are on the verge of financial disaster. I was always taught that the capitalist system was based on risk and reward, you risk investing a certain amount of money in a project for the reward of the profit you will receive when the project is completed or sold. Now we find out that capitalism is slowly slipping toward socialism for a few. Why is a for profit enterprise backed by the government and labeled to big to fail. and where is the risk involved if the federal government is going to bail the investors out.
All organizations fail from the top down, shouldn't we allow them to fail so that we have the opportunity to choose better managers with a vision who are more efficient and effective at running a corporation rather than bailing them out at tax payers expense. The Secretary of the treasure Paulson said that you don't throw the baby out with the bath water and I agree but some time the bather should be thrown out for doing such a lousy job.
posted by: barnabus1 (reply)
post date: 07.11.08 (2:05 pm)
Back in the 80's we bailed out the banking system, because they had made loans to underdeveloped countries, Argentina said, "We will not even pay the interest on it!" So the taxpayer paid the several billion dollar load, same for Mexico, Portugal and a host of other countries...think it cost the taxpayer 100 Billion!! Now we must bail out the Mortgage companies for their foolishness if Fannie Mae and others too, might only cost a trillion or two!! Taxpayer can afford it...and the war...and any other hairbrained scheme idiots can come up with!!!