Wall Street And Socialism

WALL STREET AND SOCIALISM....There are several obvious things happening in the financial markets right now. One is that there are enormous amounts of money flowing through non-bank institutions that are fairly lightly regulated. Another is that the people running these institutions can take enormous risks that provide them with enormous payouts, and they can do it with the knowledge that if those risks cause a collapse, they won't have to give any of that money back. The feds and society at large will eat the loss.

What follows is an email I got from a regular reader that touches on both these subjects. It's pretty clearly on the apocalyptic side, and I don't necessarily agree with all of it. But it seemed like it was worth reprinting, if only to spur some reaction. I hope he's all wet. I fear he probably isn't.


Kevin,

One of the things that shocks me is that the liberal blogosphere has been deadly silent about the massive bailout of bankers that is taking place with taxpayer money, and fueling the collapse of the dollar. Where's the outrage? What we're seeing is a classic example of "Privatize the gains during the boom — e.g. hand out $30B+ in Wall Street bonuses each of the last several years — and socialize the losses during the bust." But for this to be taking place in the context of a financial apocalypse among the American middle class (9m families currently have negative equity in their homes, and prices in all likelihood have much further to fall) strikes me as bordering on criminal. Why aren't the Democrats demanding the re-regulation of Wall Street and the reining in of compensation in the finance industry as quid pro quo for these bailouts?