- Created: Tuesday, 14 April 2009 14:50
- Written by Steve Palmer
‘America is more communist than China is right now. You can see that this is welfare of the rich, it is socialism for the rich – it’s just bailing out financial institutions. This is madness, this is insanity, they have more than doubled the American national debt in one weekend for a bunch of crooks and incompetents. I'm not quite sure why I or anybody else should be paying for this.’ Billionaire investor Jim Rogers
W-w-what the [bleep] just happened?
In just two weeks, the world’s largest mortgage purchasers, Fannie Mae and Freddie Mac, got nationalized by right-wing conservatives; the last of the large Wall Street investment banks either went bankrupt (Lehman), or got bought by a conventional bank (Merrill Lynch by Bank of America), or turned themselves into regular commercial banks (Morgan Stanley, Goldman Sachs); the world’s largest insurance company, AIG, got an $85bn loan from the US government in exchange for 80% of its assets; the world’s largest retail bank, Washington Mutual (WaMu) failed after depositors had withdrawn $17bn and was bought by JP Morgan.