Saturday, December 06, 2008

Bailouts: And the Goose and the Gander

Three weeks ago, when Secretary of the Treasury Hank Paulson was first proposing to 'bail out' the banks, everyone (at least everyone left of center) said: "Not unless we the government gets a piece of the action; we want some oversight (some decision control);' bailout money was conditioned on hands-on, participatory involvement.

Which leads us to a further consideration: now that the Fed and the Government are going to have to go to the marketplace to get themselves bailed out...after all, the US is running a huge dollar deficit already and needs to borrow even more money to make up for the ever-increasing deficit for the bailout...the US government is going to have to turn to a lot of Chinese state fund sources and Arabic resources to buy our debt instruments (i. e., loan us the money). The question then arises: does the same demand for a piece of the action and regulatory control apply to our international bailout partners...those who buy our debt? Should the Chinese or Arabs now demand a piece of the USA action and demand some control over our US economic decision-making, similar to that which the Congress and American people are demanding from the borrowing banks and investment banks?

Isn't "what's good for the goose, good for the gander"?


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