So let me get this straight . . .
The rush to rescue the banks and the bankers is happening across the world.
Congress has finally agreed to rescue Wall Street after having reconsidered its position due to some changes made to the bill. We knew they would come round eventually and apparently, the bill is just the same but with some pages added regarding millions of tax breaks. Tax breaks for who I’m not quite sure about but I’ll withhold the cynicism for now.
Our own Brown government is bailing out Bradford & Bingley. Prior to this, it bailed out Northern Rock.
Iceland is doing something similar and so is Europe as a whole.
I’m confused, as usual, on many levels.
What I don’t get is that they are going to take control of the debt part but not the profits. Does this mean, as suggested here, that the public, ie, you and me, will mop up the bad debt of the banks with our own public money and hold that debt which we will pass on to future generations and the bankers will still walk away with the profits?
As the Socialist Worker again rightly puts it, for decades we have been told by Labour and Tory governments alike that the market system is the best and only system but what we were never told is that when that systems crashes . . . when banks fail and shares plummet, we the people would have to foot the bill.
This welfare for Wall Street stands in stark contrast to the daily reality for working people – who face their homes being repossessed . . .
Yes, the welfare of the fat cats of Wall Street, London etc. is clearly very important to our leaders but what about the welfare of the ordinary citizens? What about the stability of the people? Will the ordinary people whose homes are at risk of being repossessed . . will they be bailed out? Will they be rescued too? Will people’s jobs be protected? Will their hard-earned pensions be safe?
The politicians argue that it must be done to give stability to the banking systems as a whole and the Brown government is calling it nationalisation which begs another question, why is he suddenly on the side of nationalisation when it involves getting his corporate banker friends out of trouble but remains vehemently opposed to the renationalisation of our vital public utilities?
Ultimately though, will the people’s basic interests be protected?
No, see, what actually happens is that government’s will quickly come to the rescue of banks that have gone into debt while ordinary people who get into debt are shown no such compassion. They simply have their homes repossessed and are subsequently blacklisted for years.
I understand that Hobsons Choice may be at play here and the banking crisis will impact all our lives if the government doesn’t step in but given that we have to use public money to bail them out, it’s only right that the ordinary person facing serious financial difficulties due to said crisis should also be given some protection.