The Newer, Sader, World Order

From the Cunning Realist:

Third, the implications for the future are far more troubling than this single episode. Because the government just deemed Bear, a medium-size player and non-commercial bank, as worthy of a public backstop to the tune of tens of billions, what do you think will happen if a Citi or Washington Mutual -- not too mention a Fannie -- finds itself in the same position? Fourth, in the debate about bailouts, Fed mandates etc., don't lose sight of the fundamental story: a small coterie of unelected and in many ways unaccountable statists just reached into the public till to facilitate a transaction between private parties who've made an extraordinary amount of money during the past few years (more on that soon from a personal perspective; I think many non-industry readers will be stunned).

Yes, it seems one of the many legacies of the Bush Administration is going to be the dismantling of the capitalist economy, replacing it with a guarantee system where if you make money fleecing folks great, and if you get caught, the government will bail you out.

But touch a hooker and you're toast.