When the Public (Sector) is Milked, Private(ly)

The folks in Government, in bed with the sleazebags from the private sector...

A disturbing report from Businessweek, available on MSNBC.com gives examples of a number of local governments that made deals with the big private sector banks, risking tax payer money in search of higher returns. Now these governments are in deep trouble, and have to fork over billions of dollars in fees and penalties to the banks, in addition to losing billions on investments.

It is egregious dereliction of duty on the part of government officials to risk tax payer money, because the commitments made are never at risk- the state has to pay the employees and honor its commitments. On the other hand, it is even more grossly egregious behavior on the part of the banks to demand the money from the government, when the latter is in the business of serving the people. Services are being cut, schools are getting far less money, and people are paying more, and all the while the banks' managers and investors are looting the citizens. Capitalism run amok, with no ethical behavior on both sides.