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Bailouts aim at saving the financial sector (from itself, it should be added) rather than at saving the underlying economy.

Because the dominant narrative is that it is the financial world that makes the real economy possible rather than the other way round.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Oct 7th, 2008 at 04:48:45 AM EST

Because the dominant narrative is that it is the financial world that makes the real economy possible rather than the other way round.

Given current events I cannot imagine a better environment to change the narrative with ET leading the way.  Please do not wait until people are too busy fighting each other for enough food to survive because they will then be too desperate to listen.

Is there an ET "working group" focusing on this?

In the end, might makes right. Nothing has changed since the caveman.

by THE Twank (yatta blah blah @ blah.com) on Tue Oct 7th, 2008 at 07:19:39 AM EST
[ Parent ]
Is nationalization a  bail-out? Seriously asking.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Tue Oct 7th, 2008 at 09:22:15 AM EST
[ Parent ]
It is unclear to me whether everyone uses the same definitions of nationalisation and bailout.

But IMHO they are not the same: assets are nationalised while creditors are bailed out. Of course, they can take place at the same time.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Oct 7th, 2008 at 11:15:42 AM EST
[ Parent ]
You can nationalize  the three big american banks, and get rid of stockholders and management... and then ... if you pay down the debt of the bank, are you really bailing out those who have debts with the bank?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Tue Oct 7th, 2008 at 11:19:51 AM EST
[ Parent ]

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