Strange Days

The current proposed bailout for the American financial centre deserves serious debate.

However it’s something that has occurred consistently every few years over the last decade.

Since the tech bubble burst in the late 90’s, and the events around 9:11 the American government under president Bush has bailed out the auto industry, the airline sector, the energy industry, and now the financial sector.

What strange times we live in when a right winged administration that is a staunch advocate of the free market and touts dog eat dog business tactics is leaving a legacy of public funds used to bail out private business.

(Aside: I’ve attended lectures and ready essays from academics such as Gwynne Dyer that have suggested we are witnessing the beginning of the end of American global dominance.

I've never really thought much about the idea until this week.

Because financially the United States is essentially broke.

Where does a country that regularly runs a deficit get 700 billion dollars?

They borrow it.)

What sort of impact is this going to have? 700 billion is more money than any of us can comprehend.

What message does it say to the people who run these mega-corps when the government gives public money to stabilize private business?

It says that if you’ve convinced everyone that your big enough and important enough and you run your business into the ground by poor decisions the government will swoop in and save you with public money.

It says you don’t have to be accountable to shareholders or risk losing your job because you know someone will be there to save you.

It says your over inflated salary and year-end bonus is secure because society will pay for your mistakes.

This bailout will go through in one form or another.

Something tells me this bailout won’t be the last.