Wednesday, 24 September 2008

Welcome to Socialist States of America!

So Henry Paulson, the ex-Goldman Sachs CEO, is so concerned about his alma mater and made an outrageous proposal to create the biggest bailout in human history - $700 billion, which certainly is an underestimation with a true figure more likely in the trillions. This has also coincidentally create the biggest socialist state ever - Socialist States of America.

Notwithstanding US usual rhetorics of free market and self-reliance, such bailout plan totally distorts the market and leads to serious moral hazards. Why should the taxpayers' be used to buy toxic assets purchased by reckless traders who reaped millions of bonuses in previous years? If the government is worried about disorder caused by bankruptcies, bailout plans similar to the AIG bailout aiming at orderly liquidation should suffice.

I also want to draw your attention to the Republicans' election platform 2008 -"We do not support government bailouts of private institutions." Can Mr McCain please kindly come out and boldly reject this proposal? Thank you very much.

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