Profits are Privatized and Losses are Socialized
Nov 27th, 2007 at 3:28 pm by Chris
Nouriel Roubini on Atlanta Federal Home Loan’s $51.1 billion bailout of Countrywide.
The lesson of this sad and sleazy episode is that when profits are privatized and losses are socialized we get sleaze capitalism and corporate welfare that becomes public bailout of reckless lenders. All this from a US administration that hypocritically praises every other day the virtues of private markets capitalism. For all of us who do truly believe in free market economies where a variety of public goods are provided by governments and the financial sector is properly supervised and regulate this is not a capitalist system but rather socialism for the rich.
If you have a staggering need to feel your blood boil, I suggest you read the whole thing.
[...] lays it out. [...]