Letters from the New York Times September 19, 2008

The Financial Crisis: A Range of Voices

As we watch in awe, dismay and fear at the slow-motion unraveling of our financial system, we need to move from anger and blame to a reconsideration of some presumed truths.

First, as the federal government engages in acts to rescue one faltering financial institution after another not seen since the Great Depression, we must recognize that free — that is, unregulated — markets do not always self-correct and that the financial wizards of corporate America do not have all the answers.

Second, those same people, usually Republicans, must finally admit that if this exercise in socialized capitalism is acceptable, then having a government-run universal health care system is also acceptable and should not be denigrated as socialized medicine because it is not controlled by profit-making corporations.

Third, we are all in this together, and blaming one group or another will not solve the problem. Of course, it is in human nature to be greedy, but it is also in human nature to be altruistic.

It is time to learn from this catastrophe by putting aside petty partisan defenses, repairing the damage and improving the quality of life for all Americans.

Paul M. Wortman

East Setauket, N.Y., Sept. 18, 2008

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To the Editor:

Re “Fed in an $85 Billion Rescue of an Insurer Near Failure” (front page, Sept. 17):

Why is it that when the wizards of Wall Street are making billions, they get to keep the money, making some of them fabulously wealthy? But when they are utterly incompetent and their enterprises collapse, the taxpayers pick up the tab? Where is the justice?

Christine Ridout

Wayland, Mass., Sept.

17, 2008

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http://www.nytimes.com/2008/09/19/opini ... wanted=all

Loan, buyout, whatever, when the taxpayer pays, property ought to belong to the people. The response to the financial crisis ought to change the rules of the game, However, the old live off the pain of the poor folks keep insisting the regulation will hurt business. Maybe so. who cares? Good grief, Non-regulation hurt me as I am expected to save billionairies. Later in this section, someone writes:

To the Editor:

Nicholas D. Kristof doesn’t go far enough when he suggests that overpaid American C.E.O.’s “should learn from Britain and Australia.” I would like to see some masters of the universe line up, bow deeply and apologize to their employees and shareholders — in the fashion of Japanese managers.

And then give back the money they didn’t earn.

Sharon Bermon

New York, Sept. 18, 2008

Amen! Amen!

Yes, I wonder how much of that 85 billion is going to pay the CEO for his wonderful leadership?

Then again, you could look at our president and see what he has done in 8 years and we still pay him, let him fly around in the greatest airplane ever made.

What about the ex-home owners that have lost or are loosing there homes because there house has dropped in value and there loan is being adjusted to the side of greed. What bail out are they getting?

I think its time we started taking care of the middle class and poor in this country and fuck the rich, they have taken advantage of us long enough.

River

Riverwind (imported) wrote: Sat Sep 20, 2008 5:06 am Yes, I wonder how much of that 85 billion is going to pay the CEO for his wonderful leadership?

Then again, you could look at our president and see what he has done in 8 years and we still pay him, let him fly around in the greatest airplane ever made.

What about the ex-home owners that have lost or are loosing there homes because there house has dropped in value and there loan is being adjusted to the side of greed. What bail out are they getting?

I think its time we started taking care of the middle class and poor in this country and fuck the rich, they have taken advantage of us long enough.

River The mythology of the invisible hand collapses. We are all in the world together. I don’t know about other people; however, I am fed up with the radical capitalist theorists in and from the University of Chicago. The Milton Friedman/ Dick Timberlake crowd has failed.

"Eat the rich!"

- Steven Tyler, Aerosmith

Actually, the feds snipped the line on the golden parachute of the fannie/freddie CEOs.

You guys see "bailout" and you automatically think some fat rich guy is getting hooked up by the government. So far what we've seen is that the shareholders are the last to benefit from the buyouts, and this the CEOs who lost millions in stock value aren't being 'bailed out' either.

The real winners ARE the lower and middle class people who now have the government owning their mortgages and insurance and who will now not be evicted or go uncovered.

lilolme4 (imported) wrote: Sat Sep 20, 2008 8:35 am Actually, the feds snipped the line on the golden parachute of the fannie/freddie CEOs.

The real winners ARE the lower and middle class people who now have the government owning their mortgages and insurance and who will now not be evicted or go uncovered.

I wouldn't bet on it. The proposed legislation will only liquidate the financial obligations of institutions it would not protect individuals. --FLO--

Blaise (imported) wrote: Sat Sep 20, 2008 4:31 am Loan, buyout, whatever, when the taxpayer pays, property ought to belong to the people. The response to the financial crisis ought to change the rules of the game, However, the old live off the pain of the poor folks keep insisting the regulation will hurt business. Maybe so. who cares? Good grief, Non-regulation hurt me as I am expected to save billionairies. Later in this section, someone writes:

To the Editor:

Nicholas D. Kristof doesn’t go far enough when he suggests that overpaid American C.E.O.’s “should learn from Britain and Australia.” I would like to see some masters of the universe line up, bow deeply and apologize to their employees and shareholders — in the fashion of Japanese managers.

And then give back the money they didn’t earn.

Sharon Bermon

New York, Sept. 18, 2008

Amen! Amen!

Double Amen! Amen!

There should be a 'clause' in the contracts of these CEO's requiring them to pay back their incompetence. If they are indeed as smart as they claim, they wouldn't make the mistakes that cause these collapses. Greed indeed.

Blaise (imported) wrote: Sat Sep 20, 2008 5:11 am The mythology of the invisible hand collapses. We are all in the world together. I don’t know about other people; however, I am fed up with the radical capitalist theorists in and from the University of Chicago. The Milton Friedman/ Dick Timberlake crowd has failed.

When I think of 'The Invisible Hand' I think of a Pickpocket!

lilolme4 (imported) wrote: Sat Sep 20, 2008 8:35 am Actually, the feds snipped the line on the golden parachute of the fannie/freddie CEOs.

You guys see "bailout" and you automatically think some fat rich guy is getting hooked up by the government. So far what we've seen is that the shareholders are the last to benefit from the buyouts, and this the CEOs who lost millions in stock value aren't being 'bailed out' either.

The real winners ARE the lower and middle class people who now have the government owning their mortgages and insurance and who will now not be evicted or go uncovered.

I understand and even agree to some degree, but we have changed the rules of the game. These are bailouts whatever language about loans we use. I see nothing wrong with the government seizing these outfits, but that is not what is happening. We did not regulate and in not regulating we let government forgo one of its vital rolls. I am certain that my pension is tied to these institutions, but saving them with inflation will not help me one bit.

It protects them after the fact...The obligations that the companies owe are the same obligations that the 'people' owe.

Joe Sixpack making $25k a year can't get a mortgage from his bank, so he gets a subprime mortgage backed by fannie mae...when he defaults on it, the bank then goes to the backer, fannie mae, looking for payment. Now multiply that by hundreds of thousands.

The government bailout is in effect the federal government stepping in and telling the bank it will guarantee the mortgage and pay for it when the 'person' defaults.