Wednesday, September 24, 2008

The problem with the economic bailout in one phrase:

It doesn't dictate significant changes in regulation. The people doing the bailing out have expressed their confidence in the market system and in keeping the banking system the same with as little changes in regulation as possible. They also will not use their new power over the banks to dictate restructuring of how exactly they work. So they're saving the financial system, which I think a lot of commentators who are critical don't really acknowledge, but they're doing it in one of the most pro-corporate ways possible.

*on edit: there's also the issue of relief for people who have defaulted on their mortgages and who have had their homes seized or who are bankrupt but because of changes to bankruptcy laws can't declare it.

Hat tip for Ted Rall for pointing out edit concern.

* on edit #2: It seems that people, good fiscal conservatives, are saying that people shouldn't bail out these institutions at all, to which I say, you're fucking crazy. If having a need of 700 billion dollars to keep a financial system from collapsing doesn't convince you that something is wrong nothing will.

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