The top 100 stock
market authors
selected for publication
market authors
selected for publication
»
Comments
» Single Comment
You are currently following John Lounsbury
Stop FollowingYou are no longer following John Lounsbury
-
1228
)
-
prudentinvestor - - -
Jan 13 09:58 am
|Rating:
+3
-1
All Comments by John Lounsbury »More TARP Programs, More Policy by Deal [View article]
In my opinion, you are entirely correct. The fact that TARP participants are even talking about foregoing their "performance" bonuses is indicative of a fundamental flaw in the rescue program. TARP is being used to reward criminals. James Kwak agrees with you, to a degree. He wrote: "...that Treasury will buy as much common stock as is needed to inject the required capital, at a 10% discount to the price on at the previous market close. No matter how much capital a bank needs in a pinch, it can get it under those terms - but the more capital, the more the existing shareholders get diluted, ..."
One of the very first actions of the government should have been to curtail executive compensation of troubled institutions. Yes, this contrary to free market principles, but these people have demonstrated they are not capable of acting responsibly in the free market.
It is obvious to me that much of the deregulation of the past 30 years needs to be revisited. There was an excellent article this morning on the subject: www.moneymorning.com/2...