Crony Finance and the stimulus

Here's an interesting read by Simon Johnson, the former head of the IMF, that compares the current problems on Wall Street with the problems that the IMF continually dealt with in the third world.

The banking-and-securities industry has become one of the top contributors to political campaigns, but at the peak of its influence, it did not have to buy favors the way, for example, the tobacco companies or military contractors might have to. Instead, it benefited from the fact that Washington insiders already believed that large financial institutions and free-flowing capital markets were crucial to America’s position in the world.
One of those little peeves I've acquired over the last year is the continual confusion by pundits on both sides of the aisle between "capitalism" and "free markets" -- terms which are not interchangeable. Capitalism is a legal structure that enables capital to be pooled into a single legal entity. Free markets are simply free to the extent that they are unregulated. Capitalism can be a decidedly unfree system, as Washington is proving once again.

Thanks for all the fish

It's been a bit slow around here for the last couple of months, so to the two or three of you that still check in regularly I offer my regrets that the blog has faded away so ignobly. I may start writing for you again later in the year but with my health being what it is, it's become more of a burden than a pleasure.

UPDATE: Seems like I ain't the only one hanging it up. But I'm on FaceBook from time to time, so feel free to read me there...

Next phase: wheelbarrows of cash

How fun is it for him to say I told you so? I'll bet it's more fun than getting an additional couple of percentage points in his futile presidential bid.

We are at an economic dead-end and those in power are in denial. The truth is our economic problems are due to loose monetary policy, central economic planning, and the parasitic expenses of government.

Reality is a parody

Here we go:

The current economic strategy is right out of "Atlas Shrugged": The more incompetent you are in business, the more handouts the politicians will bestow on you. That's the justification for the $2 trillion of subsidies doled out already to keep afloat distressed insurance companies, banks, Wall Street investment houses, and auto companies -- while standing next in line for their share of the booty are real-estate developers, the steel industry, chemical companies, airlines, ethanol producers, construction firms and even catfish farmers. With each successive bailout to "calm the markets," another trillion of national wealth is subsequently lost. Yet, as "Atlas" grimly foretold, we now treat the incompetent who wreck their companies as victims, while those resourceful business owners who manage to make a profit are portrayed as recipients of illegitimate "windfalls."

Song of the Day