Every individual intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his original intention. By pursuing his own interest he frequently promotes that of society more effectively than when he really intends to promote it
~Adam Smith, (1776)
Most of us say, ‘I want this thing to pass, but I want you to vote for it — not me’
~Paul Ryan, Republican Congressman for Wisconsin
Today’s WSJ first page reads
Historic Bailout Vote Fails in the House by Narrow Margin; Industrials Drop 700 Points Amid Broad Stock-Market Swoon
By preventing the very visible hand of the goverment to act, the US Congress will allow the Invisible hand of the markets clear up the mess of the Barons of Wall Street, but the cleaning up is going to hurt.
A real pure capitalist should be glad: One of the most important attributes of Capitalism is letting failing companies disappear. No help is received by inefficient companies the same way that pop ‘n mom stores do not receive any help when a Walmart gets in town.
A Pure socialist should be sad: The WSJ is predicting one million houses foreclosures in the next six months. A lot of hard working people are going to pay the price of not being rich. They will pay for the greed of the CEOs of the US Financial Industry.
Interesting enough, the true is the exact opposite: The bailout sought by G. Bush is widely unpopular, no congressman wanted to vote for it so close to the elections; nobody wants to help the greedy big fish of Wall Street. The capitalist are panicking since the lost in the Dow Jones are going to be huge, as I am writing, the DJCI is down 700 points, about 8%.
The true is that in this case realpolitiks should prevail. Everybody is going to pay if the huge barons of Wall Street lose. All the manufacturing industry, badly beaten now, will get worse. A credit crunch is surely to follow, and a lot of unemployment will be salted with hose foreclosures. The US Government should help the companies that are struggling now, so its representatives, the US People, can dodge a huge economic crisis. That does not mean bailing out the culprits. The CEOs that took the risky bets should be charged and go to trial for misdemeanor. Conrad Black deserves a lot of company, but I think he will remain alone.