Friday, September 19, 2008

The Next Three Raids On/Bailouts by the U.S. Treasury

Already in progress is the request by General Motors, Ford, and Chrysler to have the taxpayers fund their tooling up for the next generation of their domestically named but largely overseas produced automobiles.

Beyond that it's a race to see who next will need rescuing with taxpayer dollars. The contestants getting to the starting line are the fat cat holders of (i) all the corporate leveraged buyout debts that cannot be serviced by the borrowers as cash flows shrink along with the economy, and (ii) the huge and swelling amount of unrecoverable consumer credit card debt.

Worry not. It'll happen.

Somehow the big corporations, banks, investment funds, and their ilk who dole out huge campaign contributions always are able to persuade the politicians who are recipients of their largesse that the public interest requires tapping the public treasury to keep them afloat.

If you have any doubts about it, remember that the same political donors were able to persuade Congress and the Administration to virtually eliminate the ability of ordinary people to discharge their debts through bankruptcy so they could make a new debt free start.

Socialism for the rich and free enterprise for the rest -- it's a wonderful system!

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