Quote of the Day, Nationalizing AIG Edition
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Alex Knapp | Wednesday, September 17, 2008 |
“No, no. Relax. We couldn’t possibly be socialists. Socialists only nationalize successful businesses.”
– John Scalzi
About the Author: Alex has a B.S. in Biochemistry from Worcester Polytechnic Institute and a J.D. from the University of Kansas School of Law. He has been published in the Kansas City Star, TCS Daily, and Comic Book Resources. He joined the staff of OTB in June 2006. Additionally, he’s been writing at Heretical Ideas since October, 2001, and also reviews cigars at Cigar Jack's Cigar News and Reviews.
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What is a bailout anyway but a reverse windfall profits tax - think of it as a stimulus check for the government.
Hilarious.
Is a loan the same as nationalization of a business? AIG has plenty of hard assets to secure the loan. Those assets include the "government backed" securities from Fannie Mae and Freddie Mac.
"Socialists only nationalize successful businesses."
And then promptly run them into the ground. But that's a story for another day.
"Socialists only nationalize successful businesses."
And then promptly run them into the ground. But that's a story for another day.
So what you're saying, is: In Capitalist America, failure socializes you?(*)
(*)See, this is why OTB needs a moderation system, this should cost me something...
Steve Plunk:
Is a loan the same as nationalization of a business?
No, not necessarily. However when you combine it with the government getting an 80% equity stake it is.
Crust, I would disagree. AIG has plenty of assets to back the loan and the government has no intention of running the business if AIG defaults. The 80% stake is only in the case of default. This is not anywhere near nationalization of a business.
Fannie Mae and Freddie Mac were nationalizations but they always carried the implied backing of the government.
Fannie Mae and Freddie Mac were nationalizations but they always carried the implied backing of the government.
But an 80% stake in AIG doesn't imply government backing? AIG may not have been like Freddie and Fannie last week, but it's quite a bit closer now.
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