Sunday, January 25, 2009

Even those on the Left see "Lemon Socialism"

for what it is. Robert Reich states the obvious....the taxpayers will own the companies that are losers (or corrupt enough to buy a bailout.) In other words taxpayers will bailout companies for ALL the wrong reasons.

Thank you Lamar Alexander and Bob Corker...hey, at least you "did something."


What's left? Most of high-tech, entertainment, hospitality, retail, and commodities. So far, at least, we taxpayers are not propping them up. And when the economy turns up -- perhaps as soon as next year, most likely later -- these sectors have a good chance of rebounding.

But the others -- the ones the government is coming to own or manage -- are less likely to rebound as quickly, if ever. If anyone has a good argument for why the shareholders of these losers should not be cleaned out first, and their creditors and executives and directors second -- before taxpayers get stuck with the astonishingly-large bill -- I would like to hear it.

It's called Lemon Socialism. Taxpayers support the lemons. Capitalism is reserved for the winners.