History Tells Us Corporate Bailouts Are Disastrous
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FEATURING MICHAEL POWELSON – As the US Senate unanimously passed a $2.2 trillion package to respond to the economic crisis from the Coronavirus pandemic, direct help for ordinary Americans appears to be close. But critics point out that the financial assistance for corporate America is outrageous and reveals the double standards that Congress applies to corporate responsibility versus personal responsibility.
Meanwhile, a well-timed academic study published in the Journal of Finance reveals how a massive government program in the wake of the 2008-2009 recession spurred massive insider trading among politically connected people. Already Senators Richard Burr and others are facing accusations of selling of stocks ahead of the full scale of the virus becoming publicly known.
Will there be a similar feeding frenzy this time around as well?
Michael Powelson, teaches at LA Valley College and Cal State University Channel Islands. His new book is Swindlers All, a Brief History of Government Business Frauds from Alexander Hamilton to AIG.