the bailouts are socialistic
“What will the Fed and FDIC do if there is a CRE-inspired run on smaller banks? Guarantee everything?”
Under capitalism you get bankruptcies, crises, losses, etc. In our time the government has become more and more proactive about avoiding such. The system now is just about a hybrid of capitalism and socialism.
It’s unfair, though, in the sense that public money keeps bailing out private enterprises.
Mantra now is: “Gains are privatized, losses are socialized.”
The result is a continuation of the despicable inequality. There is nothing new about that. It dates back millennia to the rise of the wealth/power elites under the auspices of the states and the empires. But we were supposed to be able to do better. The Enlightenment had a fresh new egalitarian streak (“all men are created equal”). It has so far been for the most part frustrated.
