Monday, May 11, 2009

Tales from Bailout Nation Pt. X (UPDATED with a question)

Crony Capitalism: A description of capitalist society as being based on the close relationships between businessmen and the state. Instead of success being determined by a free market and the rule of law, the success of a business is dependent on the favoritism that is shown to it by the ruling government in the form of tax breaks, government grants and other incentives.

And in other news today:

Banks seeking bailout money are five times more likely to get it if a top executive is also a regional Federal Reserve director, according to an analysis of the Treasury Department's decision making.

According to FinCri Advisor, 44.5 percent of banks with top executives on the board of a Federal Reserve Bank were approved for money through the Troubled Asset Relief Program, compared to 8.3 percent of all eligible U.S. banks.

Read more here from Bailout Sleuth.

(UPDATE #1):
And let's not forget about the sweetheart deal given to the UAW at the expense of the non-TARP bondholders in the Chrysler bankruptcy cram-down (GM bondholders, you suckers are next) and the favoritism Obama is playing with the unions out in California now with respect to doling out porkulus bucks?

So, which is it? Which system of governance gets the nod as our current governmental/private sector M.O.? Crony capitalism or Peronist fascism?

1 comment:

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