An Inherent Flaw With Capitalism
Posted by livininsanity on July 19, 2008
The cover of today’s Barron’s read “BUY BANKS” in big bold letters.
I’ll give you a second to let that sink in…
DUH! If you’re a capitalist, then it makes perfect sense to buy banks. After all, they are invincible. Because, when they falter, the United States Government will bail them out…
Banks (such as Fannie Mae and Freddie Mac) are so entrenched in the wallets, closets and homes of Americans that the United States Government, apparently, can not afford to let them fail. Since the US Government won’t let them fail, it makes perfect sense to buy banks. It’s an invincible investment. So, if you’re a greedy capitalist, buy banks.
Now, if you think people or banks or the US government should be accountable, you will obviously not buy banks. The act of buying banks supports their questionable capitalist tactics, tells the government it is okay to bail them out and supports the government that is bailing them out and, therefore, supporting their questionable capitalist tactics.
The conundrum? There is none if you have no soul. The answer is simple - buy banks – as it is merely a matter of money over… well, whatever it is you don’t have in that place where a soul would be. For those in the audience that hate capitalism, I applaud you, as you will probably not buy banks and maybe, just maybe it will send a positive message.
So, the inherent flaw in capitalism? A bank screws up, the government supports said bank and, subsequently, the capitalist thing to do is to invest in those banks – since they are an invincible investment, backed by the government.
Allen Taylor said
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
colbymarshall said
Sometimes I think it would be fun to not have a soul just for a day to see how easy it would be to not have to make any kind of moral decisions. But only for a day, mind you.
MJ said
Really though, the banks don’t want to generally be “bailed out” by the government, because if they are, then the government pretty much takes over – the whole FDIC thing – and we all know the government is inefficient. They can’t spend the money they already get from us correctly, I don’t want them touching the rest of my money.
I guess I have no soul, because I would buy a bank if I could afford one, but I also don’t believe the government should be bailing out irresponsible banks… so maybe I have half a soul?
livininsanity said
Allen – Thanks for the compliment.
Colby – Don’t even joke about that – those are troubled waters.
MJ – Buying a bank doesn’t necessarily mean “buying a whole bank” – it can simply mean buying stocks in a bank. I’m glad that you think the government should not buy out irresponsible banks. However, your desire to buy banks overrides your statement about disliking government bailouts. Unfortunately, these do not cross each other out. Hence, you have no soul. Sorry, kiddo. Better luck next time.