Melancholy Korean

Nationalizing Oil: Well-Intentioned, But Wrong

It's easy to refute her so-called argument, and you did a good job. Your point about an "increasing" number of Americans wanting a "socialist" solution is valid, especially if we replace "socialist" with what that might actually happen in the current political environment (assuming we don't have a revolution)--taxing the rich (corporation) to pay off the less fortunate.

Of course, and I don't mean to get off on a tangent here, but who should we blame for awakening the untamed beast of populism? I think the Idiot Son and the war in Iraq is probably a good place to start, but maybe also Slick shares some blame, especially his move to eliminate welfare.

The consequences of a real "worker's revolution" in America would be dramatic and severe (the probability is small, I grant) so I just want to ask all the traders out there, don't you think a decent, or even minimal, social safety net a great hedge against this kind of political risk?

Why sell that downside put? Is the extra premium from saving money on the safety net worth the (small) chance that hoards of angry, hungry, desperate people will march in the streets? That people who have just lost their homes and jobs, who have lost their retirement savings because of the deflating of the tech or housing bubble, who have nowhere to go and no one to turn to, aren't you worried they might vote for dramatic change? Or worse?