Abroad, Bailout Is Seen as a Free Market Detour

Discussion in 'Politics' started by JustChristian, Sep 18, 2008.

  1. JustChristian

    JustChristian
    Expand Collapse
    Banned

    Joined:
    Jun 12, 2007
    Messages:
    3,833
    Likes Received:
    0
    September 18, 2008

    Abroad Bailout Is Seen as a Free Market Detour

    By NELSON D. SCHWARTZ
    http://www.nytimes.com/2008/09/18/business/worldbusiness/18rescue.html?_r=1&th&emc=th&oref=slogin

    PARIS — Is the United States no longer the global beacon of unfettered, free-market capitalism?
    In extending a last-minute $85 billion lifeline to American International Group, the troubled insurer, Washington has not only turned away from decades of rhetoric about the virtues of the free market and the dangers of government intervention, but it has also probably undercut future American efforts to promote such policies abroad.

    “I fear the government has passed the point of no return,” said Ron Chernow, a leading American financial historian. “We have the irony of a free-market administration doing things that the most liberal Democratic administration would never have been doing in its wildest dreams.”

    The bailout package for A.I.G., on top of earlier government support for Bear Stearns, Fannie Mae and Freddie Mac, has stunned even European policy makers accustomed to government intervention — even as they acknowledge the shock of the collapse of Lehman Brothers.

    “For opponents of free markets in Europe and elsewhere, this is a wonderful opportunity to invoke the American example,” said Mario Monti, the former antitrust chief at the European Commission. “They will say that even the standard-bearer of the market economy, the United States, negates its fundamental principles in its behavior.”

    Mr. Monti said that past financial crises in Asia, Russia and Mexico brought government to the fore, “but this is the first time it’s in the heart of capitalism, which is enormously more damaging in terms of the credibility of the market economy.”
     
  2. Petra-O IX

    Petra-O IX
    Expand Collapse
    New Member

    Joined:
    Aug 23, 2006
    Messages:
    1,086
    Likes Received:
    0
    The good news is that us poor tax payers now have joint ownership in these firms.
    I'm already waiting for my first dividend check.
     

Share This Page

Loading...