[lbo-talk] Discussing the Crisis/Bailout

[Mark Bennett]

I know I'm late to this rodeo, but I've been trying to catch up by reading
the relevant threads.  I must say however, that I'm surprised by the amount
of support the Bailout is receiving here.  Again, this is probably
attributable to my ignorance, but is the business of America really
business?  Is what's good for [Goldman Sachs] really good for America?  Is
there truly No Alternative?  What happened to omelettes and eggs?  Reading
this list reminds me of Orlando Figes' very hostile portrait of Lenin in "A
People's Tragedy".   I ask seriously: if financial capitalism is about to
blow itself up, why would any leftist want to stop it from doing so?
Because it will cause the working class pain?

On Mon, Oct 6, 2008 at 12:56 PM, James Heartfield <
Heartfield at blueyonder.co.uk> wrote:


> John says,
> Can you point me to a "very good" argument against the bailout?
>
> I am tempted to say that I can think of seven hundred billion good
> arguments
>
> But how about
>
> it won't work
> it avoids addressing the underlying problem
> it rewards the institutions that created the problem
> it increases moral hazard
> it is more of the same extension of credit that fuelled the problem in the
> first place
> it deepens the US economy's dependence on credit
> it puts off the problem to tomorrow
> it damages the credibility of the US economy
> it damages the credibility of the US government
> it damages the credibility of the US financial sector
>
> Not to say that I have a better idea, but just because this is the only
> idea on the table, does not mean that is a good one.
>
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