Wednesday, October 20, 2010

No matter how you party, it's still 2010.

When Reagan bailed out Chrysler, although it may or may not have been the best thing for the auto industry in the long run, it wasn't Communism, because Reagan wasn't a Democrat and because the Republican technique of calling things their opposites wasn't employed against him. And of course the loan was repaid, with interest. Jobs were preserved, a small disaster was prevented, or at least postponed for 30 years. Of course principle was involved, which means it was contrary to the doctrine that must not be tested, since it always seems to fail in predicting outcome.

Bailouts and secured loans you see, are not quite the same as nationalizing the means of production, but certain parties having had so much of a good time waving warning flags over the years, cries of COMMUNISM come as naturally to the lips as an obscenity might when you stub your toe at 4:00 AM.

When the Democrats do it: when Democrats do anything including winning an election, it is of course Communism because -- well because you win elections saying idiotic things like that and popularity is the test of truth, is it not? Value perceived is value received and if something succeeds, and there's no Republican there to insist it didn't, it never happened.

Anyway, I digress. What I wanted to mention this morning was an article in that Lefty web site Bloomberg.Com (or is it a Righty site?) telling us that the Wall Street Bailout that self taught economists who slept in a Motel 6 last night tell us was an example of extravagant Government spending, has so far returned an 8.2% profit: a cool 25 billion, 200 million bucks. Sure, the long term consequences are not certain. Most long term projections are not, but
"Two years later TARP’s bank and insurance investments have made money, and about two-thirds of the funds have been paid back."
says Bloomberg and although you can consider the source, you must in turn consider the sources screaming about Communism, demonic possession, masturbation, moose hunting, grizzly bears and Kenyan tribal politics -- and their nearly 100% failure to predict what we've been through in the last three years even with all those "liberal" voices prophesying doom.

I'm not trying to make too much of this, but it seems that reality differs quite a bit from the boiler plate hyperbole, which makes semantic sense if nothing else, since that's how hyperbole relates to objective reality. But Citigroup has payed back $33 billion of the $45 billion it received, leaving the Treasury with a profit so far of $8.2 billion, or 18% payback, mostly as a result of selling its stake in the lender at a higher price, according to data analyzed by Bloomberg. Bailouts for Goldman Sachs and Morgan Stanley have returned 14% and 13% respectively. Not the Promised land, really, but not communism; not a "Government takeover." It certainly isn't the Great Depression redux it certainly would have become had we elected to let it all fall down, blame the country for laziness and wanting something for nothing and recommend austerity like old Herbert Hoover.

In terms of harming the country it can't compare with the swashbuckling spending on invasions and hugely inefficient government agencies of record size and the wild borrowing on the promise of big revenue increases from tax cuts to millionaires that never appear no matter how many times we're promised it will.

Again, I'm not trying to call it a recovery, but I'm not trying to call it any of the things the Tea Partyers and those riding their coattails are calling it, even the very, very few who have the slightest idea of what's going on. If they do know, they're careful not to pass it on to the "party like it's 1773" crowd who still think their taxes went up and their guns are going to be confiscated and the masses must arise to shake off the chains of democracy. It would interfere with the program of making them think they're smart and knowledgeable as they dress up as an overweight John Hancock, making asses of themselves.

No, what it is, is waking up in the wreckage after you disregarded the advice of your friends not to let your drunken big brother drive; blaming them for the wreck, blaming the air bags for your injuries and blaming the EMT's for not instantly repairing your broken ribs - with no cost to you.
How's that same old shit working out for you?

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