Calvin & Hobbes on the Bailout

11 Feb
Click to enlarge

Click to enlarge

Cue the freeners bleating on about the free market.

HT Expat

11 Responses to “Calvin & Hobbes on the Bailout”

  1. Ike February 11, 2009 at 8:53 am #


    (please ignore that these are two of the most heavily regulated industries, and lets just blame it on a failure of capitalism)

  2. Mike in WNY February 11, 2009 at 9:05 am #

    No need to bleat, the comic shows why the free market works. The perceived value was lower than the price and the consumer CHOSE not to buy the product. That is how the market works, unless the government distorts the value of products through subsidies, tax breaks and regulations.

  3. hank February 11, 2009 at 11:09 am #

    That wasn’t humor, it was a gross exaggeration of stupidity.

  4. shim February 11, 2009 at 11:52 am #

    Lighten up people….it was cute…and funny.

  5. Ben McD February 11, 2009 at 1:43 pm #

    Calvin & Hobbes is my favorite comic strip of all time.

  6. Denizen February 11, 2009 at 6:52 pm #

    There is and never was ever a such thing as “the free market.”

    Having one is about as ludicrous and unattainable as pure communism.

  7. Adam K. February 11, 2009 at 7:05 pm #


    you realize that the strip is over 15 years old, right?

  8. Adam K. February 11, 2009 at 7:07 pm #

    Mike & Ike,

    The crisis is caused by OVERLEVERAGING, not the government, just like the Great Depression was caused by – wait for it …



  9. Mike In WNY February 12, 2009 at 12:08 am #

    Adam K., as long as people believe that, the problem will never be fixed. You can’t dismiss the actions of the FED printing massive amounts of fiat money, flooding the banks with devalued, cheap dollars and the corresponding governmental pressure to make bad loans. The free-market had about as much responsibility for this mess as Hitler did for creating the Red Cross.

  10. Adam K. February 12, 2009 at 8:01 am #

    Yes, it was a terrible idea to push mortgages on risky home-buyers. But that is not why we’re melting down. Speculation on homes that had no real non-speculator buyers is what pushed up prices in the markets that crashed, not banks loaning money to “subprime” poor people to but shitty homes in the poor suburbs. Subprime loan defaults alone could never cause massive regional markets to collapse; it causes things like Cheektowaga West of Harlem.

    The banks didn’t need to be bailed out because they made some bad loans. Bear Stearns didn’t collapse because the mortgages on their balance sheet declined in value. It collapsed because they couldn’t pay the calls on the insurance on the mortgages they provided.

    This is the fault of Credit Default Swaps and similar derivatives where banks promised out the same money 15-60 times. At least in the 1920’s they had the sense to stop at 10x in their margin sales.

    Of course putting the same dollars into the system over and over will spur economic growth. But if the money’s not real, you’re fucked if you get called on it, and that happened. That’s not the fault of Regulation or low loan rates, but it may be the fault of a lack of regulation.

    And anyways, why, oh why did the fed “flood” banks with money to lend? Because the banks told them too. Subprime loans had positive present values assuming that nothing changed, and that was an assumption the banks were willing to make. No one from the Fed came and arrested the JP MorganChase CEO when he said he wasn’t going to make any more subprime mortgage loans 3 years ago.

    Clearly your natural inclination is that the government causes problems. Therefore you are looking for a way to make this the government’s fault. Yeah, the government causes all sorts of problems, but in this case your trying to hard – the problem with these banks was caused by…the banks! Just like the free market promised they would be.

  11. Ward February 14, 2009 at 1:56 pm #

    Time to return to a responsible coinage policy, here:
    “Change” you can count on.

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