A Fresh Approach to Socialism

Bill Anderson draws attention on LewRockwell.com today to the incoming administration’s consideration of the establishment of a new government bank.  As Reuters explains, the new bank would supplement current bailouts and “acquire bad assets clogging the financial system” – in other words, buy the very goods that no one in the free market would bother with, further skewing the financial system and propping up bad business practices and low quality products.  The article continues:

In outlining the idea of an aggregator bank on Friday, Bair and Paulson said the government could use money from the Treasury-administered $700 billion financial rescue fund to capitalize a new institution that would be able to absorb toxic assets now weighing down bank balance sheets. The hope would be that taking these bad assets off the hands of banks would allow the banks to attract badly needed private capital and renew lending, the original intention behind the bailout fund known as the Troubled Asset Relief Program (TARP).

So no one panic now, we’ll clearly all be fine.

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