Socialism for the Rich

Michael E. Lewitt is the Managing Member and President of Hegemony Capital Management. He’s a financial analyst, portfolio manager, and former investment banker whose sympathies might be expected to align with those of free-market Republicans. But he’s also a realist. Here are two excerpts from his latest client bulletin (boldface added):

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The American model of debt-engorged free-market capitalism is coming full circle and straining under its own weight. Fannie Mae and Freddie Mac were the epitome of the capitalism-for-the-poor, socialism-for-the-rich policies that have been pursued by financial authorities in this country.

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Confidence in the American model has been shaken with good reason. Despite the rally of the dollar (mostly against the Euro, another compromised currency), the U.S. currency has been battered largely due to a loss of confidence in American economic policies and leadership.

We continue to shift hundreds of billions of dollars out of lour own coffers into those of countries that do not share our beliefs because we have moved too slowly to develop sound energy policies. In large part this is because our politicians remain indebted to an automobile industry that is on the verge of insolvency and to an energy industry that places its own interests ahead of the country’s and the world’s.

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