WALL STREET TO 'VOTE' NEXT
Nothing more to say, is there?
Was it Schumpeter who said that the fixes to the current crisis sow the seeds of the next one?
Tell me, if you've suckered the Federal Government's taxpayers and every depositor in the country into insuring giant-size depositors, what incentive do you have to manage the firm conservatively, sensibly? Since the government has guaranteed the downside, aren't you motivated to go look for the next best thing from Wall Street, without worry as to how that will be perceived ("don't worry, you are fully insured if it goes sour ... "). Or worse, "don't worry, if we don't participate in the Paulson plan."
As for large depositors, what incentive do they have to pressure for better disclosures, so that they can determine where to place their money, who is "safe" and who is too "risky"?
Wednesday, October 1, 2008
Dems Capitulate Without Forcing Look at Alternatives, GOP Rushes to Consolidate Gains
