These bailouts have got to stop. At what point does this madness stop? We’ve already fallen down a slippery slope. Our tax money is being used to bail companies out whose management have made poor decisions. I realize that in almost every case this happens, an argument can be made for the overall better well being of the economy, but at some point, after we hand out tens of billions of dollars every time a company is about to go under, aren’t we just throwing money down the drain?
At what point is there no longer a free market?
Here’s a quote from Steven Pearlstein of the Washington Post (found via my friend Rob Johnson):
“What we are witnessing may be the greatest destruction of financial wealth that the world has ever seen — paper losses measured in the trillions of dollars. Corporate wealth. Oil wealth. Real estate wealth. Bank wealth. Private-equity wealth. Hedge fund wealth. Pension wealth.”
He’s right on. It’s scary. But is constantly handing out billions of dollars a good long-term idea??
Just something to think on…
Colin
