Monday, September 29, 2008

Proposition on gay marraiges, but none on bailing out banks

It's funny how American democracy and capitalism work. People get to vote on propositions on some issues in the ballot. We have a proposition-8 letting people vote on if gay marraiges should be legal. But, the biggest material expense for tax-payers, the bank bailout was never even on the ballet (or) on any proposition. The 700 billion dollar buyout is the probably biggest individual expense bill in recent times. No say for people on that. Only elected representatives (who were elected on realities based on 2004-2006) get to decide.

I really wonder if a proposition on bank bailout would pass if put to a public vote.

Saturday, September 27, 2008

Bailout of banks: The power of "loss language" at work

I am currently taking the course of "Organizational behavior", in which we were taught about the power of "loss" language. It's amazing how the media, politicians and biased economists are effectively using the technique to convince people of the 700 billion dollar bailout of financial institutions.

They said "We invite risk of economic collapse if the bailout does not happen". Instead, they could have said "Bailout is essential to continued functioning of banks."

They referred to the $700 billion dollar plan as "bailout" instead of "rescuing banks" plan