Stocks Falling, Cars Crashing, People Dying

Well, only really the first one, but catchy title, eh?


Anyway, WSJ says:

"The American financial system was shaken to its core on Sunday. Lehman Brothers Holdings Inc. faced the prospect of liquidation and Merrill Lynch & Co. was close to a deal to sell itself to Bank of America Corp."

That's all wonderful, but what I'm really interested in is the next paragraph:

"The U.S. government, which bailed out Fannie Mae and Freddie Mac a week ago and orchestrated the sale of Bear Stearns Cos. to J.P. Morgan & Co. earlier this year, drew a line in the sand with Lehman. It refused to provide a financial backstop to potential buyers."

The Feds get to do this because...? That, I think, is what really separates Republicans from Democrats. If the Federal government can bail one out, where does it draw the line? Suddenly, socialism is back and ready for action and the government is sticking its disgusting, slobbery nose in places it shouldn't be.

Be objective and call it capitalism, or help 'em all and call it socialism, but you can't have it both ways.

Thanks to GR for the lead.