Monday, September 29, 2008

House Rejects Bailout

What we're seeing is the capitalist system slowly devolving as a result of its internal contradictions. It begins to seem that a debt-based capitalism, one that only survives by borrowing money, is like the one-industry town where everyone lives by doing the other guy's laundry.

Doesn't it seem that if there is something wrong with our debt-ridden financial system it is simply a mistake to prop it up by more borrowing from ourselves and foreign governments? We are becoming our own loan sharks. What happens when we can no longer pay ourselves the vig? I suppose we break our own kneecaps.

Let's postpone the "bailout" for ninety days. There's plenty of money in the system. The problem is that the financial industry is sitting on it hoping that the government will print more so it doesn’t have to risk its own.

NY Times Story

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