Wednesday, 28 January 2009


The Capitalist economy has become a casino economy. When it suits political chiefs they shift to social bail out for big companies. Does that mean only big companies are affected by financial crises. What is the criterion of assisting these companies? The question I never got an answer from is... if the American companies got bail out from the government, what about their clients. Who will bail out ordinary workers who are also affected by these financial woes? In the US alone more than 1,8 million people lost their jobs yet we heard nothing about how they could be bailed out. More people are going to lose their houses, but the government is not interested.

Last year we heard that Blue chip companies with BEE component that are facing serious difficulties should be bailed out. I am not sure as to how this wouldl help ordinary South Africans. What this means is that taxpayers will pay double to keep companies afloat. First our tax money will be spent on these companies, later they will have to pay back that money. Where are they going to get that it? Their clients who happened to be the very same taxpayer who paid for them in the first place will pay more bank charges to pay back the same debt.

This in short shows us that we live in a Casino type of economy where speculators can dictate what they want in the market. May be socialism is not bad after all if the US is contemplating to nationalise the American Bank, that would be the biggest sin during cold war years.


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