Private Profit, Public Loss

Air America Radio Talk Show Host Ron Kuby—who apparently used to hang out at the Catfish Bar and Grill on the campus of Kansas University when my folks frequented the place circa 1976—has just nailed the crying shame about the Fanny May and Freddie Mac bailouts. So long as they’re profitable, these are private firms held publicly, with the profit offered to its investors. The minute they lose, of course, we’re all expected to bear the loss. I know. These two companies shoulder half our economy. Which would seem to argue the point that few companies should not hold an enormous wealth in any given sector of the economy. Wouldn’t it? Doesn’t that provide a good example of the notion that fiercely consolidated capital is actually a soft underbelly to any economy?

One thought on “Private Profit, Public Loss”

  1. Tended bar at the Catfish from about 1977-1979, hung out there starting in 1975. Buy your folks a cold one for me. Ron

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