So they finally passed a bailout package and one of the powers it grants the administration is the power to take an equity stake in the banks being bailed out. So basically the taxpayers would become stockholders of the banks instead of owners of the banks’ failed debt. As stockholders, the taxpayers would own both the bad debt but also part of the productive areas of the banks’ business. I know some conservatives who oppose that idea because it simply smells too much like socialism…the government owning companies. I say just the opposite is true.
To me, it’s more like the ultimate recognition by the government that capitalism is the way to go. We’re not talking about the government controlling companies, deciding what direction the companies go in, or staffing companies. That’s socialism. Here we’re talking about the government being a passive shareholder, albeit a large one like a pension fund may be, but that’s it. Sure the government gets rights as a shareholder, but so do you and I as owners of stock in our retirement plans. Anyway, to me that’s government literally “buying in” to capitalism, not business being controlled by the government.
Besides, why should I, as a taxpayer, only get to own the crap that comes out of this mess?!?! The taxpayers are taking a risk by buying this toxic stuff and if there’s going to be a reward, we should share in it. I’m already pretty much resigned to the fact that all the money I’ve poured into social security over the years is never, ever coming back to me when I finally get to retire because we simply won’t have the money to float social security by the time the baby boomers pass on. So the notion that my tax dollars will be used to purchase the garbage that the pirates on Wall Street and elsewhere left behind when their ponzi scheme collapsed really, really irks me. I want a piece of the upside for my money, not just the poison.
Its sort of like going into someone’s house and paying $25,000 for the crap in the basement that nobody uses anymore. You know, the worn out baby toys, that ridiculous exercise machine from the info-mercial, and other gems. It’s much more fair to pay $25,000 and be part owner of the entire house. That way when it sells, maybe you can get your money back. Heh, maybe even make a profit. The U.S. taxpayers turning a profit? Imagine that.
[…] Original post by digitalseer […]
As simple as the partisan politicians want to make this issue seem, it is not. I am conflicted about the bailout.
One one hand, bad companies deserve to fail. Their assets will be bought up by companies that succeeded and life goes on.
On the other hand, the companies that are failing could screw over a lot of people who really didn’t do anything wrong. I don’t want to see people life savings/retirement go down the drain because of near criminal executive practices.
So yea, guess my stance is I don;t know 🙂
That’s so true, it definitely is a quandry. My feeling is that we’re going to pump cash into them anyway, so we (the taxpayers) might as well get to own the good parts of their business (real estate, stock brokerages, you name it…they’re in it) by getting stock in return for that cash, instead of just getting to own their bad loans and nothing else. So last night secretary Paulson came out and said he wants to go the stock-ownership route, too. Maybe he read digitalseer! XD
Either way, I’m counting that as my first successful prediction. :p