“Crony capitalism” is a term often applied to foreign nations where government interference circumvents market forces. The practice is widely associated with tin-pot dictators and second-rate economies. In such a system, support for the ruling regime is the best and only path to economic success. Who you know supersedes what you know, and favoritism trumps the rule of law. Unfortunately, this week’s events demonstrate that the phrase now more aptly describes our own country. FULL ARTICLE

A federal bailout would spare California from having to make spending cuts needed to bring its budget into balance. The matter has become urgent since California voters rejected several tax-hiking ballot initiatives. Rather than taking the vote as a signal to dramatically curtail spending, the state turned to the feds. If they get a free pass, the politicians can avoid fixing any of their past mistakes or preparing California for the future. FULL ARTICLE

It’s all part of the war on depression, which is destined to be as successful as the war on drugs. But, hey, if it is a good investment, why not buy bailout bonds? Well, there’s a problem. The bonds represent credit extended to companies and projects that are proven market failures. Creating these bonds is a way of institutionalizing the principle of buying low and selling lower. FULL ARTICLE

I’ve been worrying about the state of the economy, what with the bailout and all. Apparently all is well.

I got a notice in the mail yesterday from Social Security. It says, “Good news! The economic recovery bill that President Obama signed into law in February 2009 provides for a one-time payment of $250 to Social Security and Supplemental Security Income (SSI) beneficiaries.” It says my wife will get a one-time check in the same amount. That totals $500! Continue reading →

The Bush/Obama bailouts require serious investigation.  Were these bailouts necessary, or were they a scam, like “weapons of mass destruction,” used to advance a private agenda behind a wall of fear?  Recently I heard Harvard Law professor Elizabeth Warren, a member of a congressional bailout oversight panel, say on NPR that the US has far too many banks.  Out of the financial crisis, she said, should come consolidation with the financial sector consisting of a few mega-banks.  Was the whole point of the bailout to supply taxpayer money for a program of financial concentration?  FULL ARTICLE

At least twenty oversized American banks have histories of reckless behavior, including bad lending and gambling with derivatives, that have left them insolvent, in fact, bankrupt. They have poisoned the economy and should pay the price for their mistakes just like every other business. Continue reading →

Just as my disappointment grew at the prospect of an unchanging foreign policy toward the Middle East, and a current absurd position escalating a no-win war in Afghanistan – or his unwillingness to help prosecute criminals in the past administration, starting with George W. Bush – this president’s economic prescription for the ongoing crisis is nothing short of an unfair repackaging of an infected, tired corporatism for a brainwashed people that to date have not been told the truth: that they have been living beyond their productive means for way too long. FULL ARTICLE

So far, American citizens have been forced to provide financial institutions with nearly $2 trillion in additional bailouts. This brings the total of current U.S. banking capital to some $3.6 trillion, still less than half of the potential problem, leaving a massive $4.4 trillion shortfall. In light of this, even noted bearish economist Nouriel Roubini’s estimate of a $3.6 trillion shortfall appears to be too optimistic. FULL ARTICLE

In America today, they’re called bailouts, but throughout history they were handouts. Some quite generous (though nothing like today’s) and always for the privileged. Never for the public interest or greater good.  FULL ARTICLE

There is much discussion these days about bailouts. Are they needed? Are they just? I say no on both counts. Yet many economists, politicians, and businessmen tell us that bailouts are needed to prevent catastrophic economic collapse. Without commenting on the justice of bailouts, they warn that we are facing massive economic pain if we stand aside and let markets run their course. Bailouts can staunch this pain, they claim, and restore order and calm to the economy. FULL ARTICLE