Tuesday, 30 September 2008

Three cheers for Congress!

. Just a short blog as well...it's gone midnight. I have no problem with openly saying I don't think capitalism works, that I think it is fundamentally flawed but I have no desire to see people suffer because of it; nonetheless Congress made the right decision in rejecting the proposed $700bn bail-out for the US financial sector. Why should the taxpayer support what are in effect reckless gamblers??

If somebody ran up huge gambling debts at a casino very few people would support the state bailing them out while they continued to indulge their habit. Nobody would support them actually being rewarded for continuing their habit. So, why do people line up with the bankers in this debate?? It has come to something when even Conservatives are chiding the City, saying it must 'share the blame' for the current crisis. In other words even the most trenchant defenders of the system feel that this time the market has gone far too far.

Congress, like Parliament, was elected to safeguard the interests of the people; not the bonuses of bankers. Elsewhere I have said that what we are in fact facing is a classic crisis of overproduction, in this case of credit and overconsumption of debt. I simply don't buy the argument that the consumer is 'as much to blame' as the banks are for offering the credit. Ultimately the responsibility lies with the financial institutions as supposedly being the fiscally responsible party.

Yes the decision will probably make the crisis worse but ultimately the question has to be asked that if something is so fundamentally broken is it really worth fixing??

6 comments:

Bernard Salmon said...

I agree that the banks have acted very irresponsibly, but when the choice is between bailing out irresponsible financial institutions or seeing the rest of the economy go down the pan, I think that's effectively no choice and the bail-out plan should have been approved. A lot of people - not just the bankers - are going to suffer as a result of this decision.

Darrell G said...

Maybe you are right but we should be quite clear about why they are suffering and it's not the fault of Congress for taking this descision.....the fact is also that despite what you say the bail-out would have been very unpopular...it was paitently said to them numerous times that wider economic suffering might be cause but people were still against it..why?? because they feel that despite that the bankers dont deserve saving....

Anonymous said...

I think capitalism generally works fairly well in terms of its ability to identify peoples' needs and wants and service those needs.

The problem lies with inadequate checks and balances - allowing the system to get totally out of balance.

If I was an American taxpayer I'd want to see these greedy scumbag bankers stripped of their personal assets as part of any bailout deal - after all it seems they've been stripping everyone else of theirs.

Darrell G said...

Does it? Funny that it doesnt seem to be working very well at the moment then doesnt it....it isnt even working well for the people that profit from it...

Anonymous said...

"Funny that it doesnt seem to be working very well at the moment..."

My point precisely. Inadequate checks and balances got us here.

Darrell G said...

How do you answer the points I make above Anon??