The European stock market was generally relieved on Wednesday after the U.S. government seized control of American International Group Inc. the day before. In North America, however, markets are down.
Could the different reactions have something to do with how the two regions approach socialism?
“Last week we argued that, with the nationalization of Fannie and Freddie, comrades Bush, Paulson and Bernanke had started transforming the USA into the USSRA (United Socialist State Republic of America),” said Nouriel Roubini, economics professor at the Stern School of Business in New York, in a note.
“So, with the nationalization today of AIG, comrades Bush, Paulson and Bernanke welcome you again to the USSRA. At least in the case of Fannie and Freddie these two institutions were semi-public to begin with as they were Government Sponsored Enterprises (GSEs). Now we get instead the first pure case of a fully private company, actually the largest insurance company in the world, being nationalized. So the US government is now the largest insurance company in the world.”
These comments are a slap in the face for the free-enterprise-loving United States. But in Europe, where socialism has been given a kinder welcome over the years, the thought of a USSRA is perhaps not so unwelcome.
