Monday, September 22, 2008

Neocons: Save Wall Street, Screw Main Street

That's been their agenda all along and now its as naked as ever...

I Say It’s Spinach, And I Say The Hell With It

Posted by Tom Piatak on September 19, 2008

Now that Henry Paulson has decided that the taxpayers will pay billions and billions of dollars to relieve Wall Street of the bad debt it can no longer successfully peddle, neoconservatives are lining up to salute. Here is David Frum, giving a “shout out” to Barney Frank for being “prescient” enough to call for Uncle Sam to pick up the tab for all the bad subprime mortgages and investment vehicles based on the bad loans that should never have been given, and would never have been given when prudent and reasonable people were responsible for home mortgages. But Frum is careful to retain some free market credibility by saying that this massive government intervention is “not like bailing out an automobile maker (a bad idea).”

Really? Chrysler repaid the government loans it got, and went on keeping tens of thousands of Americans in gainful employment. Even today, the Big Three are vital to the economic health of many American communities, particularly in the part of America I have always called home. Frum’s view is that the industrial Midwest can go to hell, but that Wall Street must always be cosseted. I say it’s spinach, and I say the hell with it.

Endless wars for fake 'democracy', open immigration, policies overtly designed to screw the middle class and break the Anglo-Protestant core of America, never before have they been so transparent.

Oh, and they are pro gun control as well...not surprising...
Astute commentary:
There are so many things wrong with Frum that one doesn’t know where to begin. But on this issue, supporting actual manufacturing and mere finance are completely different things. Finance is supposed to be a mere instrument of production, not an end in itself. Speculation converts finance into an end, not a means. But such speculative funds compete with productive investment.

The flood of funds into the housing market raised the price of houses, but this was not an economic gain; it was a loss. People do feel better when the price of their homes go up, but why should they? Adding 20% market value doesn’t make your home bigger. It could make it less stable, if the increase in value doesn’t arise (as it should) from an increase in economic activity in your area.

The bailout will fail, and the country along with it. We are close to collapse, and this is a last-ditch effort. The new president will have be faced with dire choices. One of those choices will be repression; the powers that be will do what it takes to hold on to power. Consider that as you vote.

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