Blackmail Pays: Wall Street. ..gm... What Next?

[beginner]

Democratic governments usually insist that will not negotiate with terrorists. They claim that to give in to blackmail would embolden the blackmailers and they would soon be back for more. It would also encourage other like minded criminals to try their luck too.

On September 19th 2008 Henry Paulson demanded $700billions for a financial rescue. He alone would decide what, when, where and how to use the cash.

Just like criminal kidnappers he also demanded no supervision or audit. "And don't bring the cops...OR ELSE" is basically what he said.

Do this NOW or everything will collapse next week.

So, the government did what it said it would never do...it gave him the money.

How long was it before he needed more? How much was used that week to stave off imminent catastrophe? How long was it before it became clear that everything did not collapse instantly as he had claimed.

It is a basic principal of capitalist economics that all companies believe fervently in free markets and free market forces. However, IN THEIR PARTICULAR CASE there are SPECIAL CIRCUMSTANCES. In other words, every company thinks that its competitors should face the full rigours of competitive markets but that they alone should be protected.

Business is hard. Business is difficult. Business can be ultra competitive. Business can give you sleepless nights. Business can fail and you can lose everything. Many politicians, especially European, have never worked in the real market economy and experienced this first hand. They are often slippery tongued word smiths who create a career under the protection of local government or industries that have government support or a near monopoly.

So how much easier is money from weak minded democratic politicians who can claim they are doing good by saving jobs and supporting collapsing industries from those pesky foreigners who make products people actually want at prices they are happy to pay.

Now just watch them line up for some of that worry free cash. A few million dollars spent on judicious lobbying will get undreamed of cash returns. Gimme gimme gimme.

The line is starting now. It will get longer and longer and each industry that is bailed out will put off the necessary restructuring for as long as the cash continues to arrive.

Welcome to The United Socialist States Of America.

[henryalleman]

Democratic governments usually insist that will not negotiate with terrorists. They claim that to give in to blackmail would embolden the blackmailers and they would soon be back for more. It would also encourage other like minded criminals to try their luck too.

On September 19th 2008 Henry Paulson demanded $700billions for a financial rescue. He alone would decide what, when, where and how to use the cash.

Just like criminal kidnappers he also demanded no supervision or audit. "And don't bring the cops...OR ELSE" is basically what he said.

Do this NOW or everything will collapse next week.

So, the government did what it said it would never do...it gave him the money.

How long was it before he needed more? How much was used that week to stave off imminent catastrophe? How long was it before it became clear that everything did not collapse instantly as he had claimed.

It is a basic principal of capitalist economics that all companies believe fervently in free markets and free market forces. However, IN THEIR PARTICULAR CASE there are SPECIAL CIRCUMSTANCES. In other words, every company thinks that its competitors should face the full rigours of competitive markets but that they alone should be protected.

Business is hard. Business is difficult. Business can be ultra competitive. Business can give you sleepless nights. Business can fail and you can lose everything. Many politicians, especially European, have never worked in the real market economy and experienced this first hand. They are often slippery tongued word smiths who create a career under the protection of local government or industries that have government support or a near monopoly.

So how much easier is money from weak minded democratic politicians who can claim they are doing good by saving jobs and supporting collapsing industries from those pesky foreigners who make products people actually want at prices they are happy to pay.

Now just watch them line up for some of that worry free cash. A few million dollars spent on judicious lobbying will get undreamed of cash returns. Gimme gimme gimme.

The line is starting now. It will get longer and longer and each industry that is bailed out will put off the necessary restructuring for as long as the cash continues to arrive.

Welcome to The United Socialist States Of America.

Many politicians, especially European, have never worked in the real market economy and experienced this first hand. They are often slippery tongued word smiths who create a career under the protection of local government or industries that have government support or a near monopoly.

Sorry to say but this is not correct. There are very stringent anti monopoly laws in the EU. That's why Microsoft had to pay a several billion fine because they broke the rules. Subsidising companies is not allowed. Investments yes but only after an approval of the EU committee, and if its not give them a concurrence advantage against their competitors. Often its happened that a company must pay the money back, and the government who gave it, is financially punished.

Its true that the European is an regulated economy and not a total free market economy, but this is not meaning that its not a real market economy. Don't forget that its an internal open market with no limitations for moving capital, goods, and labour between the member states. For instance an Polish company can work freely in another country with his own polish workers, he only have to pay them the same salary and social benefits as the country where hes doing the job. Event for a company who like to hire employees from another member state. Every bidding for public infrastructures or purchases (even for small towns) must be open for all companies of other member states. Their are rules who have to be followed so their can not be any favourism towards local companies.

And unlike many Americans think the European governments don't subsidize non profitable industries. That's why for instance the belgian government close down all coal mines, and did not subsidize any longer ship yards where in total 30 000 workers lost their job. But they spend several millions EUROS to re-educate the workers for other needed skills, and pay them during their training and set up specialised organisations to help them find a job. After SABENA went bankrupt 12000 people lost their job, but in 1 year time 95% did find new employment. Maybe the US could benefit from such kind of socialism.

BTW in Europe OBAMA is not regarded as an socialist but an right wing politician.