[lbo-talk] The end of American capitalism as we knew it

Marvin Gandall marvgandall at videotron.ca
Wed Sep 17 05:28:12 PDT 2008


Ira Glazer posted:

http://blogs.ft.com/maverecon/2008/09/the-end-of-american-capitalism-as-we-knew-it/#more-300

Willem Buiter

"Is the reality of the modern, transactions-oriented model of financial capitalism indeed that large private firms make enormous private profits when the going is good and get bailed out and taken into temporary public ownership when the going gets bad, with the tax payer taking the risk and the losses? If so, then why not keep these activities in permanent public ownership?" ================================ Capitalism is compatible only with the temporary public ownership and restructuring of distressed industries. In this case, it's possible, even likely, the government will create a larger-scale equivalent of the Resolution Trust Corp which disposed of the mortgage loans and other assets of insolvent S&L's in the late 80s. It could happen not long after a new administration takes office.



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