CM in MA

TARP Accountability: Bankers Say 'What, Me Sorry?'

TARP means you never have to say you're sorry. Ought to be set to music.

Henry Paulson Could Have Done Better

Gene-

About my last post. I misread your reply, putting incorrect emphasis on some of your words--sorry about that. Sure, we agree that the world would be better without the bailout. Where we disagree is that the philosophy behind the bailout, and any government action that stems from it, are so fundamentally flawed that what actually gets done is irrelevant. The bailout(s) are poison to our system. The distortions introduced by the TARP, etc. are worse than the disease. The patient would recover if just left alone.


On Nov 24 04:20 PM Gene Chan wrote:

> I guess I wasn't clear... I totally agree with you that the world
> would be a better place if a bail-out wasn't needed in the first
> place. But there is nothing we can do about that now - the bail-out
> package is there, it was already voted through Congress and everything,
> we have no power to change that. The only thing we can hope for now
> is that they don't squander that money.

Henry Paulson Could Have Done Better

Gene-

We are total disagreement--the bailout wasn't needed and isn't necessary. The capitalist system has self-correcting and healing mechanisms. These have been short-circuited by the the same people who were the architects of the abuses the system. They proclaim that they couldn't foresee the folly of their policies and practices, but now are the only ones with wisdom, foresight, and ability to save us from them. Paulson, Bernanke, et al, are only making things worse. This chapter in U.S. and world financial history will go down as one marked by hubris and failure. These people, including those about to take office, are the problem not the solution.


On Nov 24 04:20 PM Gene Chan wrote:

> I guess I wasn't clear... I totally agree with you that the world
> would be a better place if a bail-out wasn't needed in the first
> place. But there is nothing we can do about that now - the bail-out
> package is there, it was already voted through Congress and everything,
> we have no power to change that. The only thing we can hope for now
> is that they don't squander that money.

Henry Paulson Could Have Done Better

"Predicament we're in" We? Do you have a mouse in your pocket? This predicament, touted by the same people who created the mess, belongs to those who took on credit when they couldn't afford to (addicts), those who sold them that credit (street dealers), those who encouraged sub-prime borrowing (ring leaders), and those who failed to set and enforce regulations and standards (feds). Now they pass along the bill for their collective malfeasance to others while simultaneously destroying any remaining confidence in the markets. And all this for the very worst of reasons--because they can.

I am not in any predicament, except for the one being foisted on me by Wall St and Washington. Like many others, I pay my mortgage on time (in fact, I prepay on the principal). I pay my credit card bill in full every month. I save and invest (ha!) for retirement. Who are the fools in this game? All the folks like me, and our kids and grandkids, who will have to foot the bill for those who took on too much risk while pretending they didn't know.

So what's the answer. Quit claiming that those who made the mess can clean it up. The need to just stop and leave the scene of the crime. Let the market sort out the winners and losers. And let the losers take their losses. Capitalism, plain and simple is what will purge the system. All we're doing now is prolonging the pain.


On Nov 24 02:23 PM Gene Chan wrote:

> "Are there any capitalists left?"
>
> Well, I wish we didn't have to go down this path of the bail-out.
> But given the predicament we're in, and that they've already decided
> to do it, might as well do it right and make it count.

Henry Paulson Could Have Done Better

We've gone through the looking glass..."A policy that keeps his options open would have been a force multiplier that puts a floor on the prices of assets all across the system instead of the distortion we have now."

How is putting an artificial floor under asset prices not a distortion? Are there any capitalists left?