Richard Spencer

April 02, 2008

Over at Dealbreaker, John Carney is doing good work revealing that, in fact, Ben Bernake is the universal historical subject, willing late Capitalism into a higher stage of state socialism (in other words, the last big government bail out was only the beginning):   

Wall Street Socialism: How JP Morgan Gained Control Of The Means Of Financial Production

?In short, this is the mother of all government subsidies ? a non-legislative appropriation that doubles the size of all this year?s congressional pork projects combined. Without so much as a vote of Congress, taxpayers are to buy securities of undetermined value for $29 billion ? roughly Panama?s GDP, or the Federal Reserve Bank?s entire annual profit. They take this enormous risk so that JPM, a company worth $146 billion, has enough liquidity to make a major and profitable acquisition for next to nothing. JPM is more than happy to take on Bear?s book of client and counterparty accounts ? these were probably never in danger of being lost, and it?s great business for JPM. The ones being rescued are Bear?s bond-holders. They keep their shirts. The stockholders at least keep their socks. The profits from the good times are retained, and the losses are socialized.?

And now for your viewing pleasure, the musical version of everything he just said: