I would like to begin by defining a symbol I suspect I will use often: B$ = Bailout Dollars. These are distinct from normal dollars in that they are acquired as a consequence of failure. B$ are earned by someone other than the person who gets to spend them, because the spender is a failure being rewarded commensurately with the magnitude of his or her failure.
The crassness of Peter Kraus’ recent purchase of a B$37MM apartment on Central Park was impressive. Citicorp’s B$50MM private jet was impressive. John Thain’s B$1.2MM renovation was impressive, too. But these are all merely examples of pigs feeding at an overfilled trough. They are crass, but not, in my opinion, inherently evil. They merely represent the “let them eat cake” detachment that those who have no connection to on-the-ground reality invariably suffer from.
Today, one is again given cause to consider exactly what version of reality the bankstas running Wall Street are part of. One must also wonder what it will take for these same bankstas to realize that they do in fact bear some of the responsibility for the sorrowful condition of our economy. A sound thrashing with a hickory stick? Chilly eggs at breakfast? An American car?
When bankstas go hat in hand to Washington seeking hundreds of billions in bailout dollars, it would seem wise to at least pretend to have interests other than their very own at heart. I mean, if I were arguing that my institution was “too big to fail”, I would at least try to concoct some plausible rationalization about why that were true. And one of the singularly most effective arguments at earning government largesse is job creation. A simple “if you save us, we will preserve 14,000 American jobs! Think of how that will help the economy!”
And it’s true! Saving American jobs WILL contribute toward saving the economy. No matter what your run of the mill trickle-down dittohead tells you, an economy with a sound foundation (at the bottom) is one upon which a great structure can be built.
But…while they were sitting before congress, hat in hand, seeking to loot the tax trough, these same bankstas were laying off American workers and working to replace them with foreigners. They increased their H1B visa applications for highly compensated foreign workers by over 30% during fiscal years 2007 and 2008.
Now THAT is High Crass!
I have vehemently opposed intervention from the beginning. I believe in the rationality of free markets, and that manipulated markets are inherently corrupt ones. I believe no institution is too big or too little to fail, no matter the “ripple” effect. I believe the bailout will serve only to make a bad problem much worse, and far more costly to society both directly and indirectly, and that by the time government intervenes (as a reactionary entity), it is already far too late.
Yet it is quite clear that government feels compelled to “do something” – which I read as “let’s throw everything at a wall and see what sticks”. So far, nothing has stuck, only smeared.
That said, I’d like to comment on something Jon Stewart said recently on the Daily Show:
He said “bail out Americans”. Use the bailout money to erase consumer debt and give the economy a do-over.
I think it’s a Great Idea that would serve a key purpose: it would relieve American taxpayers of having to pay their loans twice – once through direct loan repayment and secondly through the taxes they will pay to fund the bailout.
The banks would get the money they need – and the people would get a much needed break. It’s not “free money”, either. We’re going to pay it back either way. Why pay twice?
you said it brother. these people(bankers,no wankers!),have never given a fuck about anybody but themselves. what you have now is the culmination of darwinistic capitalism at its worst. make no mistake folks; we are flirting w/depression. may john maynard keynes have sex with ayn rand!
unfortunately i invested my 50MM B$ with BM