Shower the people – with tax burdens
A cash advance can rescue you from one of life’s little financial emergencies. However, when it comes to the recent banking system bailout, “little” is not the operative word.
Lemon Socialism
Rescuing the United States banking system – for which both the George W. Bush and Obama administrations are responsible – is what New York Times Op-Ed columnist Paul Krugman calls “lemon socialism.” In other words, “taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.” His recent column “Bailout for Bunglers” shows that the more things change, the more things stay the same.
Treasury Secretary Timothy Geithner put the prevailing attitude in no uncertain terms when he said that “We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system.” Looks like taxpayers will be picking up the bill for bankers gone wild.
Mr. President, bankers need to be leashed
Now, something must be done to shore up the financial system. A number of major institutions are dangerously close to the edge and they need more operating capital. Since taxpayer money will be pumping them back up, isn’t it logical to assume that said banks will become publicly owned enterprises?
Yet as Krugman sees it, the Obama Administration is doing everything it can to avoid banks being “of the public, for the public.” Government will buy the most troubled assets of banks and guarantee that the banks will not take hits on the rest. This guarantee serves bank stockholders greatly but does nothing for the public but take their money.
Payday Loans for extra money in emergencies
President Obama was tough on Wall Street firms giving exorbitant bonuses to their CEOs during this crisis, yet he has been relatively silent about the same practice for banks. Too much money is going to be spent fixing the system to allow things to be “business as usual” for executives mostly lacking in restraint, accountability or common sense. Cash Advance Mojo says that Mr. Obama needs a serious gut check. Bankers must be held accountable. With a financial system in good repair, the public won’t have to worry about opportunistic special interest groups reaching into their lives and telling them whether or not they can use payday loans for extra money in emergencies.
Related articles
- Why Your Bank is Broke (time.com)
- Salins on Wealth and Political Power (democracyforvancouver.org)
- David Calhoun Mendelsohn: Transparency, Justice and Clarity in the Economic Crisis (huffingtonpost.com)
It is unjustifiable to have taxpayers foot the bill for bank losses, and not then get a share if the bank does well. Private enterprise is a feature of capitalism that isn’t to be lost, certainly, but padding the bottom line of venture capitalists using tax payer dollars is nothing short of a crime.