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Showing posts from August 9, 2009

Catholic G. K. Chesterton's Way to Fix Global Economic Crisis -"[T]he Crisis has produced its own forms of servility. The 2008 version of Fannie Mae and its cousin Freddie Mac – mortgage companies that privatized executive pay and profit while socializing risk and loss – are splendid examples of a Business Government at Work. This same Business Government can be seen in the skillful way in which Goldman Sachs executives have alternated between “creating” and “solving” the financial crisis. For example, it was then Goldman Sachs CEO Henry Paulson who successfully lobbied a half decade ago to weaken the reserve obligations of private U.S. investment banks; then, as U.S. Secretary of the Treasury, he wound up in charge of the 2008 bank bailout, which saved the great banks from their follies (although, for reasons we can only speculate about, he did let former arch-rival Lehmann Brothers go under). The concept of Business Government also explains the preference these days by both American and Europea