On the brink of collapse
Monday, January 26, 2009 at 06:55AM http://www.nytimes.com/2009/01/26/business/economy/26banks.html?_r=1&pagewanted=2
“We told the Asians that they had to be willing to let banks and companies fail,” said Jeffrey Garten, a professor at the Yale School of Management and a top official in the Clinton administration. “We warned that there was great moral hazard if governments just bailed them out.”
“And now,” he said, “we are doing the polar opposite of our advice.”
They act as if the nationalization would be for the taxpayers' benefit. Where's the political will to stop this? In a free market system, the banks would fail or restructure. There are many small and medium size banks which can take the slack and reap the rewards of their good business behavior. The bad banks need to go under. And, we definitely don't need to create a bad bank. Another sign of statist insanity, all done under the cover of Bush-caused-this, so that any Republican dissent is dismissed. Bush may wind up as the symbolic, ultimate whipping boy that allows statism to boldly become what it's always wanted to become -- all-powerful.
Atlas Shrugged might turn out to be more prophetic than anyone realized.
Reader Comments (2)
I really don't have time to add another book to my stack to read, but it might be time to finally pick up Atlas.
It'll be worth the effort.