Thursday, March 05, 2009
Hank Grenbeerg sues AIG
This is incredible - if Greenberg is correct in saying that Tim Geitner barred AIG's former chairman and largest shareholder from discussing the company's rescue while Goldman Sachs, AIG's largest CDS counterparty is allowed. This is disgraceful and a clear conflict of interest. Geitner should resign and GS should not be bailed out .
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When I first heard the accusations that Paulson saved AIG so that AIG could "pay its bill" to Goldman, it reminded me of an essay by Rand. I don;t remember which one it is, but she explains how a mixed-economy bureacrat violating rights by helping Person X may be acting from invalid/immoral premises or from corruption, but that rights get violated one way or the other.
Sometimes it's really tough to tell. Imagine a Detroit politician who thinks "what's good for GM is good for the country". Paulson might have thought the same thing: "what's good for Goldman is good for the country". Of course, he'd have held it in a different form. Something like: "let's kill AIG to save some of the better institutions."
Adam Smith must be turning in his grave at this resurgent Mercantilism.
I don't believe this is Merchantilism - this is corporatism - classic Italian fascism with the Wall Street oligarchs having their politically privileged positions at the trough.
Is there an essential difference between those two: mercantilism and corporatism? I'm not sure if there is. Who was "at the trough" under mercantilism?
Aside: I just noticed Greenberg's name is spelled wrong in the title.
Geitner is a disaster. He is like a drowning man looking for a floatation device. He's having a panic attack! At this rate he'll pick the rope with the millstone attached.
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