October 7th 2008
Fast-Forwarding Toward Socialism
H
ere I thought the bailout was a creeping, or maybe a sauntering, toward government control of the economy, but Andrew Leonard at Salon find evidence that it’s more like an NFL halfback crashing through a high school line.
Leonard found a passing reference in an NYT article to new Bernake/Fed plans to issue short-term commercial paper, i.e., large, short-term loans to businesses (and maybe California), which would make government “a major player in the provision of short-term lending to American businesses.” How much lending? Says the NYT:
But the possibility of propping up the vast market for commercial paper could represent an undertaking even broader than the Treasury Department’s plan to buy as much as $700 billion in mortgage-backed securities.
What’s next, trading the Star Spangled Banner for L’Internationale?
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