Sunday, September 14, 2008
Bailout - The Economic Dilemma
The tumult of economic woes persists as Merrill Lynch just stays afloat by brokering a deal to sell themselves to Bank of America and Lehman Brothers flounders with a definitive flourish from Treasury that it will not sanction another unholy bailout marriage at the taxpayers expense. But this latter action creates the atmosphere of a moral dilemma. If Bear Stearns deserved a 29 million dollar sweetner to cuckold JP Morgan Chase, how does Paulson explain away why Lehman Brothers is not suitably worthy? After all the government has been interventionist barely a week past in securing Fannie Mae and Freddie Mac. I suppose the shell game does wear thin as the collapses expand and the neatly erased demarcation between Wall Street, Treasury and the Federal Reserve appears more stark. Of course, the white elephant in the room is the greater ethical query: Why is it that government can find the political will to aid and underwrite the losses of corporations yet utilizes the language of wellfare when it comes to helping Citizens Joe and Jill maintain limb and liberty and stay in their place of residence? Someone should remind the mandarins of economic prowess that even in a card game an ace every now and then does not sustainable policy make. Crumbs from the table of the rich man did not keep Lazarus from death, and all his fine linen and purple garb did not secure the wealthy man the seat of heaven. The train is hellbound, folks; and more revelations will ensue. Watch carefully or you may think that sow's ear they are pulling out of the hat really is a rabbit.