Socialism is alive and kicking in America

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musicmonkey
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Socialism is alive and kicking in America

Unread postby musicmonkey » Sat Sep 20, 2008 5:46 pm

I'd love to hear catt's response to this one. He's always telling me how much he loves capitalism and free markets. So should the government intervene in this case? Why or why not?

International Herald Tribune wrote:The bailouts of Bear Stearns, Fannie Mae and Freddie Mac and now of AIG show that nationalization and state intervention are no longer dirty words in the United States.

Ironically, these multibillion-dollar bailouts are being carried out by an administration that preaches the virtues of the free market and private enterprise to the rest of the world.

For decades, Washington has been cautioning the world against injecting public money into the banking system while demanding greater deregulation and privatization of the financial sector. When India and China recapitalized their banking systems some years ago, they were severely criticized by the United States. Do as the United States says, not as it does.

Who says that socialism is dead? It is alive and kicking in America. But this socialism nationalizes losses and privatizes profits.

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Re: Socialism is alive and kicking in America

Unread postby michael » Mon Oct 13, 2008 7:39 pm

I just read an article in the NY Times by Steve Lohr talking about this very topic. I find it intriguing that Americans have such an aversion to any government action that "appears" to be socialist. Our government has intervened in bankings and business several times in our history. In this article, Steve Lohr mentions a few examples. "In past times of war and national emergency, Washington has not hesitated," he states. He lists examples from WWI, WWII and even in 1980 when, "In banking, the government took an 80 percent stake in the Continental Illinois Bank and Trust in 1984."

Then, the most impressive example to me was the intervention back in the 30's.

"The nearest precedent for the Treasury plan, finance experts say, are the investments made by the Reconstruction Finance Corporation in the 1930s. The agency, established in 1932, not only made loans to distressed banks, but also bought stock in 6,000 banks, at a cost of $1.3 billion, said Mr. Sylla, the N.Y.U. economist. A similar effort these days, in proportion to today’s economy, would be about $200 billion.
When the economy stabilized eventually, the government sold the stock to private investors or the banks themselves — and about broke even, Mr. Sylla estimated. The 1930s program was a good one, experts say, but the government moved too slowly to deal with the financial crisis, which precipitated and lengthened the Great Depression. The lesson of history, it seems, is for Washington to move quickly in times of economic crisis with a forceful government intervention in the marketplace. And Ben S. Bernanke, chairman of the Federal Reserve, has studied the Great Depression and the policy miscues in those years."

He goes on to say,

"The United States is acting in step with Europe, where governments often take a more interventionist stance in economies and the financial systems are in the hands of a comparatively small number of banks."

So, what is the problem? It seems that Americans just can't stomach the idea of government intervention being called "nationalist" or "socialist."

Lohr states this as well, "Elsewhere, government bank-investment programs are routinely called nationalization programs. But that is not likely in the United States, where nationalization is a word to avoid, given the aversion to anything that hints of socialism."

Personally, I am ready for more socialist interventions if that means that we can reign in some of the excessive greed and inequities that have been the hallmark of big business, including insurance companies in our country.

So, you can probably guess that I am supporting Barack Obama to be the next president of our great country. I hope you support me and vote for Change we can all benefit from!

Intervention Is Bold, but Has a Basis in History, By STEVE LOHR
Published: October 13, 2008

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Re: Socialism is alive and kicking in America

Unread postby bareskin73 » Sun Nov 23, 2008 6:56 pm

This is a huge problem, one that was caused by the very government that is trying to save the day. Really this was a 70 year process of trying to get everyone into their own homes, even if they didn't have the money. Seventy years ago loans were rare, very rare. After many decades of making regulations, changing regulations, and pressuring banks to make loans until we got to the Clinton administration where even more pressure to put people in houses they couldn't afford the banking system really had no choice but to make these bad loans due to political pressure. I am truely very suprised that it took this long for these institutions to begin failing, but as I suspected once one started going down there would be a dominoe effect. The problem here is actually too much regulation, the banks where required by regulation to make loans to people that the banks knew was very risky, and they where likely to loose money on the deal. So understandably the banks developed products that would increase their profits to offset the forecasted losses. That's just good business practice if you want to stay in business when your dealing with anti-business regulations. Nationalization of the financial markets is nothing new, it's mearly a cancer that grew over the course of 70 years until it finally put it's victim into a coma.

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Re: Socialism is alive and kicking in America

Unread postby america-penny » Thu Apr 01, 2010 10:00 am

thanks for sharing the post

musicmonkey
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Re: Socialism is alive and kicking in America

Unread postby musicmonkey » Fri Jan 22, 2016 5:37 am

Bernie 2016!


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