Re: [Marxism] Campaign for a NO on bailout?

[Jim Farmelant <farmelantj@xxxxxxxx>]

On Sun, 21 Sep 2008 10:18:07 -0400 "S. Artesian"
<sartesian@xxxxxxxxxxxxx> writes:
> I don't think you missed it, and I think such reluctance is more 
> likely to 
> come from the free-marketeering Republican side than the Dems.  

Well, conventional bourgeois economic theory would
suggest that there is a major issue of moral hazard
associated with the proposed bailout plan.  If
the Federal government is going to save the hides
of the very people who are responsible for the
mess they made in the first place, what's to prevent
them from continuing to make similarly reckless
decisions in the future?  If these people are
to be freed from the "discipline of the market:
then who or what is going to impose discipline
on them in the future?


> Remember 
> when the Clinton Administration finally responded to the cries for 
> help from 
> Thailand, So Korea, Taiwan, etc., it was the the Private Idaho 
> Republicans 
> who spoke, at least on TV, against the emergency loans, criticized 
> the IMF, 
> etc.
> 
> But the key here, that forms the unity of  left Democrats and right 
> 
> Republicans is the "alternative" to the bailout-- paralysis of the 
> short-term commercial paper markets, of the money markets, of the 
> repo 
> markets-- complete loss of day-to-day funding abilities.  The 
> "long-term" 
> markets have been paralyzed for a year-- IPO market is what 1/8 
> globally of 
> what it was in 2005-06;  leveraged loan business is no longer 
> loaning or in 
> business, investment banks and commercial banks, and funding 
> syndicates want 
> to get out their obligations to extend credit lines to business.
> 
> It's all about maintaining short-term markets,  and if that can't be 
> 
> maintained, then in the immortal words of the US Secretary of 
> Treasury, 
> channelling Stevie Wonder, "Heaven help us all."
>
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