“Economic growth without social progress lets the great majority of people remain in poverty, while a privileged few reap the benefits of rising abundance.”

As you’ve no doubt heard, the US government will step in with an 85b loan to AIG. No surprise.

“The board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance.”

You know what I see? Another example of private gain with social risk. We tell business exactly what we expect: ignore common sense, place risky bets, and make big bucks while you can. When the game is up, the people (who didn’t see a penny from your wildly profitable days) will bail you out.

"I bought a bank!"

"I bought a bank!"

In other news Barclay’s buys Super Mario Lehman Bros for a scant 250m. Holy hell! Do you realize how cheap that is? Oprah could have bought Lehman – she made more than that last year. So could Steven Spielberg, Tom Cruise or Russell Simmons.

I vote for Russ. Ladies and Gentelmen, put your hands together for Russell Simmons Def Investment Bank!

headline quote – JFK

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2 responses to ““Economic growth without social progress lets the great majority of people remain in poverty, while a privileged few reap the benefits of rising abundance.”

  1. On the whole – I think you’re on point.

    However, it is worth pointing out that the US Government – and Joe Taxpayer – may actually turn a profit from the AIG deal.

  2. Yes, I admit, the govt is getting a nice interest rate and the loan is only for 24 months.

    Damn you MBA students and your facts!

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