The bail out will take place simply to avoid that depression. But depressions have some salutary effects - the scoundrels go belly up, the weakest get purged. And, in the wake of the disaster, people demand strict regulation of the money lenders to keep their greed in check, and government spends money on the real economy to put people back to work.Ah yes - the many wonderful "salutary effects" of a depression. I especially love the really macho stuff about the "weakest getting purged." At the risk of providing Mr. Borosage with a clue, the "weakest" aren't the guys at Lehman who were pulling down eight figures a year until a couple of weeks ago and whose comeuppance so obviously thrills Mr. Borosage. The weakest among us are those on the economic margins. While a depression might not "purge" them, it will surely hit them hardest. They'll be the ones without jobs and without the means to heat their homes. Actually, those who are truly the weakest won't have homes to heat. But as Mr. Borosage would probably argue, you can't make a delicious omelet of government hyperactivity without breaking a few eggs. It's funny. Organizations like Campaign for America's Future are supposed to care about the weakest among us. Perhaps they do. But obviously they care a whole lot more about their political agenda and ambitions.
Lefties Learning to Love a Depression
From Ezra Klein's blog comes this lovely"let them eat cake" gem from Robert Borosage, co-Director of the lefty activist group Campaign for America's Future: