“The AIG bailout was the most pernicious kind of cronyism – not even crony capitalism, but crony socialism. When we zoom out, that’s exactly what the curiously lopsided payoffs hedge funds get are. ..
What was, with the AIG bailout, a mere crack in the economic firmament is now a gaping fissure. The result of the financial coup d’etat is a Great Divergence: we we have two economies running in parallel: capitalism for the poor, and socialism for the rich. The former essentially subsidizes the latter endlessly and perpetually.”