by Roger Koppl
The Los Angeles Times reports that the “Federal bank bailout isn’t trickling down.” No kidding. I remember Dušan Mramar telling me years ago that the purpose of privatization in the old Soviet block was restribution, not economic efficiency. We’re looking at something similar with the bailout. The purpose of the bailout is redistribution, not economic recovery. A Reuters report flagged by TheAustrianEconomists supports this view. The report says what Bob Higgs and others have been arguing, namely, that credit is flowing abundantly contrary to what Paulson says. The crisis is real enough if you’re a normal working person losing your house or your job. If you are, however, the bailout is not meant to help you.