America discovers that bailout will be used to pay Wall Street bonuses.
Goldman big winner in government’s revised bailout of AIG. But maybe there is some justice, Goldman stock is tanking hard, with no end in sight. If it drops far enough, some other predator will eat them.
Fed defies transparency aim in refusal to disclose loans. Bloomberg is suing the Fed to force them to disclose the recipients of $2 trillion (yes, trillion) in emergency loans.
My reaction:
Throw out the term “socialist” regarding the bailout. It does not pertain to rescuing the ultimate of capitalist systems so that it can keep on running. Nothing is being nationalized in any meaningful reforming sense. Using that term produces a conditioned reaction (commies! socialists! red baiting!) that just confuses the issue.
The only morals of capitalism are: (1) profits and (2) loyalty. And not so much the loyalty part when profits are at stake. There are NO other principles in capitalism. As Nietzsche said, merchant morality is merely a refinement of pirate morality. This, then, explains *why* the captains of industry are paying themselves and their shipmates the booty our government handed to them.
Am I shocked? No. I’ll be disgusted, though, if the American people keep putting up with these thieves and liars.
Re: Only two morals in capitalism, and the second (loyalty) not so much when the first (profits) is at stake:
“There are instances where bonuses are justified, deserved, and in the best interests of the investment bank involved,” said Dan Lufkin, a co-founder of Donaldson Lufkin & Jenrette Inc., the investment bank acquired by Credit Suisse Group AG in 2000. “Your very best people are people you want to hold, and your very best people will have opportunities even in this environment to transfer allegiance.”
To be a viable capitalist system, morality must be a driving force. Adam Smith would be appalled that modern day “capitalists” equate his concept of self-interest with greed.
Am I saying we don’t have a viable capitalist system? You bet your Ayn Rand. It’s anarchy, pure and simple. Even what passes for regulation is pretty much set by the highest bidder.