Sunday, December 16, 2007

Robbing The Poor To Give To The Rich.

In the Absurder Will Hutton writes about banking:
The first task of President Franklin D Roosevelt after his election in 1932 was the recapitalisation of the bankrupt American banks by new public agencies - which his Republican critics decried as socialism. But it pulled the US out of slump. Unless the western interbank markets start functioning again soon, the question will arise as to which governments are going to bail the western banks out of their foolishness.
Given that the Depression lasted for 7 or 8 more years after Roosevelt's banking reforms, and bank collapses* continued unabated in that time why should we look to that era as an inspiration. Also why the likes of Hutton who bleat on about widening inequality and income redistribution incessantly, so keen to transfer money from the general tax paying population to shareholders who have chosen to invest in risky banks? Robbing from the poor to give to the "Not quite as rich as they expected to be" is what Hutton's proposals amount to.

* Interesting fact, whilst hundreds of US banks went bust every year throughout the Depression, no Canadian banks did. This was because US banks were over regulated and artificially prevented from diversifying their risks.

1 comment:

James Higham said...

Good to see people recognizing the truth.