As readers undoubtedly know, Bank of America proposed a loan extension to Republic Window and Door employees, in part no doubt to avoid undue criticism over the Holiday season, but there may be a more fundamental cause. I found this quote from a longer article concerning Newt Gingrich's observations.
On Election Day, voters did not reject conservatism. On the contrary, they rejected the Bush administration for expanding executive power, increasing deficit spending, conducting a far less than prudent foreign policy, and displaying a general lack of competence. Of the financial bailout package, Nobel Prize-winning economist Joseph Stiglitz said: "If this isn't socialism, then I don't know what is." Conservatism, indeed, was not tried and found wanting — it was not tried.
Last night the Asian market reporter on Bloomberg noted that the US has abandoned pure capitalism for the Chinese model in which the government is the largest shareholder in what are otherwise capitalistic enterprises. The US government is part owner of the banks, and will soon be part owner of the US auto companies.
We have just seen in the Republic Window - Bank of America situation what happens when the government has part ownership. They are an owner with massive influence both real and in terms of access to the press. Thus sound business decisions take second place to politically motivated choices.
Assuming these ventures, and I am sure others in our immediate future, begin to turn a profit for the government how -- given their avariciousness for money in the form of taxes -- will the government willingly redeem their ownership?
It may be that pure capitalism is long gone in the United states. When we look for the administration which started this ball rolling, it is surprising that it was that of George W. Bush.
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