It’s A Dirty Job
Okay, let’s all be honest, no one is crazy about writing a check for $700 billion to bailout a bunch of people who made bad decisions.However, the problem is what would happen if we did nothing. As much as I would love to see a lot of people get their upcomings, someone has to be the grown-up here.Think of it as a parent whose kid gets arrested. You can leave him their indefinitely or you can let him sit for a while. My father did the latter and somehow it worked.I don’t think it’s the best deal in the world and I don’t think it’s the worse deal. It could use some improvements definitely.But as much as it costs to do something, it would have been a lot worse and cost a lot more to do absolutely nothing.Now if you don’t mind, I’m off to go run up a bunch of bills so I can qualify for my government bailout.
October 1st, 2008 at 1:07 pm
Before we write the $700 billion check or whatever it will be after the full implications of the 400+ page bill is implemented. How about:
1. Suspend FASB 157, Mark to Market, which earlier this year, because it requires banks to value their mortgage junk that’s being puked at 6 cents on the dollar.
2. Bring back the uptick rule. Shortselling a company is fine and dandy…but pounding down stock in an illiquid market by relentless shorting into whatever bids are out there has been a big factor in how quickly Lehman and others failed.
3. Forget Paulson who is a mouthpiece for Goldman’s interests. Goldman was in on the planning of this deal. Wonder how that happened.