SeekerDarksteel
Corporal Sucka
Join Date: 10/11/2005
Posts: 25
Location: Champaign-Urbana
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Posted: 3/12/2008 9:42:14 AM
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http://biz.yahoo.com/ap/080311/wall_street.html
So our solution to financial corporations fucking up by taking bad debt is to put MORE money in their hands, creating $200M out of nowhere, using their already near worthless debt as collateral. Glad to see the Fed is complicit in cooking the books for us.
It's like throwing the covers over your head and plugging your ears going "LA LA LA IF I DON'T HEAR IT IT'S NOT REAL!" Maybe it helps in the short term, but it not only ignores the very real monster under the bed, but shows absolutely no disincentive for corporations to actually, you know, do their jobs properly in the future if we're just going to step in and bail them out every time they fuck up. Free market means letting the market decide who to choose AND who to smack in the back of the head.
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grimmeissen
Administrator
Join Date: 1/14/2004
Posts: 1217
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Posted: 3/12/2008 12:18:59 PM
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That's $200 BILLION, not million.
This is kind of in line with my latest column on the front page. If the Fed and government continue to bail out and subsidize bad businesses, then we will get more bad businesses and the ones that are poorly run will continue to thrive.
Financial institutions get the kind of insurance that no other industry gets. They have a lender of last resort to bail them out every time they make bad investments. If you or I did that, we'd be bankrupt already.
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