A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Monday, September 29, 2008

Free enterprise is dead!

Yes, if the Congress votes to prop up dodgy-dealing bankers but not other business types. Free enterprise is over. Partially-supported (by dragooned taxpayers) enterprise is in. This means that those industries and/or companies that various governments deem so important from the state's point of view will be saved (executives included?) and those that are not will perish on the economic vine.

There are some good ideas for the future floating around. One is to tax bonus-gatherers at high rates and put the tax into a fund for safeguarding against such events as we see now. Whatever happens, the future will be different from the past.

If we take the Bradford & Bingley, they were probably quick to put defaulters into bankruptcy. How come the taxpayer can't put the B&B into bankruptcy? Sauce for the goose, but not the gander? We are told that bank failures will be bad for the economy. I'm now of the opinion that this is hogwash and is only propaganda by the bank owners. They have put themselves above the law, above economic norms and above the democratic system. In the UK, we are told that depositors will suffer. Well, they know or should know that £35,000 is ring-fenced. If they have their lifesavings in one bank, then they have only themselves to blame in the event of a bank failure.

Well run banks should not suffer failure, but those that took the Las Vegas route are falling like nine-pins. The way the American and British governments talk, it is as if ALL banks will disappear. That is surely absurd. Just like any other market, one bank will come in to mop up the business of the failed company.

The only asset the taxpayer is getting is a vast bundle of toxic loans. It is no wonder that many around the world are rightly questioning this bail-out. If these people are bailed out then they should be held accountable. I'm glad to see the FBI is investigating. Maybe we will find out what really went on.


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