Sunday, September 21st, 2008
Sec. Paulson says U.S. taxpayers will likely be buying bad loans from foreign banks, too.
Sebastian Mallaby throws cold water on the bailout, and explains why 2008 is different than 1989.
Amity Schlaes make the important point that the stock market crash of 1929 and the Great Depression were two very different occurrences. The latter was created by and prolonged by massive government intervention. It’s a history lesson I suspect will be lost on most of our politicians.
Lehman Brothers’ New York office will split $2.5 billion in bonuses. Something ain’t right, here.
I’m tired of hearing the hysterical, “OMG! Can you imagine if we had privatized Social Security?” line. Yes, I suppose if you had invested your entire Social Security account only in the stock market, started at the tail end of the Clinton boom, and then retired early this week, just before the rally, you’d be in some trouble. But there’s no 30-year period in the history of the stock market where your investment wouldn’t have returned a higher yield than what you’re getting from the federal government. And for those of us under forty, the Dow Jones could drop below 1,000, and we’ll still be doing better than what we’re likely to get out of Social Security by the time we retire. Which is nothing.
Best line thus far, from Jim Henley: “Wouldn’t it save administrative costs if I just started giving my money to random rich people?”
Second best line thus far, from John Scalzi: “Are we socialists yet? No, no. Relax. We couldn’t possibly be socialists. Socialists only nationalize successful businesses.”