Arizona Mortgage Guru » Bailouts, Bailouts, Bailouts! It’s Not Socialism. I Promise.

Today was a historic day, for on this day, the US government announced the largest government bailout of a U.S. securities firm. In case you’re not familiar with todays events, Bear Stearns, one of the largest securities firm on Wall Street was teetering on the brink of collapse from a lack of cash yesterday. A few calls here and a few handshakes there, it got emergency funding from the Federal Reserve and JPMorgan Chase & Co. this morning. Here is the Fed announcement on what your tax dollars are doing for you:

Release Date: March 14, 2008
For immediate release

The Federal Reserve is monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly functioning of the financial system. The Board voted unanimously to approve the arrangement announced by JPMorgan Chase and Bear Stearns this morning.

The message has been sent and here is what I hear:

Risk? Why not bet the whole farm? Uncle Sam will come by and pick up the tab.
Free market? Well that’s only when things are going well.
Market correction? Only applies to the “less” important industries like accounting!
Borrow and spend? Hey, we all do it, what’s a few bucks between ~~comrades~~ family.
Corporate Responsibility? Thats a stump speech, did we really mean that? Ha… ha.. ha..

Readers, I invite you to add what you heard today. I am very eager to hear your thoughts.

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Tags: bailout, bear sterns, federal reserve
Categories: Congress and Government, Debt, Economics

3 Responses to “Bailouts, Bailouts, Bailouts! It’s Not Socialism. I Promise.”

Chris Johnson wrote a comment on March 17, 2008, 8:56, pm

about right.

Bailing out homeowners= bailing out banks.

Wall Street learned the lessons of the S&L Crisis: bank failure won’t happen.

After Katrina, we all witnessed the utter failure of FEMA. We were crying for MORE fema. More socialism.

Crazy.

What ever happened to responsibility?

Rogan McGillis wrote a comment on March 17, 2008, 11:01, pm

Well i suppose this is what happens when you have an entire monetary system run with smoke and mirrors. If they were to let major banks go kaput people would realize just how ridiculous things really are.

but yea, we are working our way towards some form of socialist something or other.. i’m not even sure what to call it. Its more like 99% of us socialist with 1% making a boat load of money…haha..

Rogan McGillis

Shannon Hubbard wrote a comment on March 24, 2008, 12:16, pm

I’m not sure why they think promoting the same lack of responsibility that got us into this mess will get us out of this mess. That’s our government at its best!