Bailout is "Dirty Socialism"
Tim Hazledine, University of Auckland | October 6, 2008
The nationalization of Fannie Mae and Freddy Mac was "clean socialism." ++ The Wall St. bailout, on the other hand, has exposed deep divisions in the US. ++ Both sides of Congress had serious doubts when passing the bill. ++ This is dirty socialism. ++ Liquidity could be created by only granting credit to good banks, but the US banks are all “mired in the sub-prime morass.” ++ While countries like New Zealand have no influence over Washington, they should hope that their reserve banks will be as effective as ever before.
