Profits Are Private But Losses Are Socialized?

Oh hell, let’s do that Downward Spiral thing one more once…

From “Why Paulson Is Wrong” by PalLuigi Zingales, Robert C. Mc Cormack Professor of Entrepreneurship and Finance, University of Chicago -GSB (not exactly a liberal bastion):

The decisions that will be made this weekend matter not just to the prospects of the U.S. economy in the year to come; they will shape the type of capitalism we will live in for the next fifty years. Do we want to live in a system where profits are private, but losses are socialized? Where taxpayer money is used to prop up failed firms? Or do we want to live in a system where people are held responsible for their decisions, where imprudent behavior is penalized and prudent behavior rewarded? For somebody like me who believes strongly in the free market system, the most serious risk of the current situation is that the interest of few financiers will undermine the fundamental workings of the capitalist system. The time has come to save capitalism from the capitalists.

Yes, the emphases are my very own.

Go read it all.

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