Thursday, December 2, 2010

How Big Government Saved the Rich

Lest we forget.... as we contemplate the full force of the crisis bearing down on the weak and vulnerable, all this started because the super-rich all of a sudden needed Big Government. As the FT puts it 'Wall Street Owes its Survival to the Fed'. $3,300 billion's worth of corporate welfare.

Ireland, meanwhile, is paying the price for the decision back in 2008 to guarantee the banks that had made stupid upside bets on property markets that were grossly over-fed by any standard, turning a bank insolvency into a sovereign insolvency.

Funny how over here we seem to have decided it was all Gordon Brown's fault for running a 3.5% budget deficit for a couple of years. Somebody please remind everyone that the banks, not the state, made the wrong bets.