Herr Bush & the failure of laissez-faire capitalism

Yesterday Herr Bush addressed a gathering of high powered financial analysts in New York. There he read robot like the sad story of his administration fiscal and monetary policies which came tumbling down by the subprime scam and a crunch on easy cash and at the very moment he was trying to perk up a somber audience with his cheery faux bonhomie, Bear Stearns a us$400bn investment bank was in the midst of a classical run on the bank. The New York Fed stepped in with a loan of us$2bn to allow the bank to pay off its clients, restore confidence in a bank with a good balance sheet but short on ready cash...Thanks to Bears CEO Alan Schwartz who knows the banking business, JP Morgan's Jimmy Diamon and Bears clearing house of a bank will lend the Feds billions. Schwartz has 28 days to turn Bears fortunes around, sell off assets, or find a buyer. The street has been yapping at Bears heels since its two subprime funds went belly up in August 2007, and it has a long memory of the time Jimmy Cayne the old CEO wouldn't come to the rescue of a hedge fund in 1998 when all the other big bracket banks did. And yesterday the rumour mongering against Bear took a bite, with a steep fall in the bank's stock despite Schwartz's words of encouragement about the company. If two days ago Bear had no liquidity problems, it did yesterday with a loss of investers' confidence. The Feds stepped in quickly in Bear's case but not in Carlyle's. Why? for the simple and plain and obvious fact, it feared a domino effect on America's banking industry should Bear fail, even though like the British Northern Rock it has good financials. In Britain the Labour government nationalised Northern Rock, but in the US the government doesn't work that way. And so Bear is saved and the mighty rich Bush family connected Carlyle's capital fund will fail. Eight years of Herr Bush has turned the US into a classic case of a decline in world power and the general impoverishment of its people save Herr Bush's scum of the rich and super rich. No one is making the connexion of Herr Bush's wrongheaded war in Iraq and the general economic mess he engendered. As a rabbi from the Middle Ages cursed the false messiah Sabatai Zvi, let his words fall on Herr Bush & his crowd...may they rot till eternity!