Comments on: Bailouts and Moral Hazard

By: geowlySew

geowlySew — Tue, 17 Aug 2010 05:19:27 +0000

Very Interesting! Thank You!

By: CasaLara

CasaLara — Wed, 02 Dec 2009 20:43:28 +0000

It is such a “CRIME” what we have let happen to our financial system. And, to put Tim Geitner in charge of our finances is even crazier! But, remember, only 10% of Obama’s administration ever ran a company – so they are flying by the seat of their pants!! Their “Chicago thug mentality” has shown to be less than honorable in any way. Do you ever remember any administration ushering people in and out due to their “character” and lack of financial responsibility? And that’s’ just the ones we know about. I bet if we look deeper into most of the White House staff we would find less than stellar pasts. With those kind of staff members, what do we expect? Certainly not a well oiled machine that they claimed to have during the campaign. That campaign was orchestrated by Soros and his wealthy friends. Obama is simply a puppet for their whims! They aren’t’ serious about creating jobs and doing the right thing for the financial market – If they were, they would have made sure the stimulus actually had “shovel ready projects” – you know, the kind that fix our roads and bridges – our sewers and other underground pipes. These things WILL keep detieriating and when they get really bad, they will collapse! Just creating those kind of jobs would help strengthen our cities – and, gee, I don’t know, maybe even give people out of work real jobs – instead, they threw a bunch of money to the base that helped get them elected!! And those people created short term jobs – if any. Museums and non-profits that received stimulus money didn’t help our economy! Obama wants the country to be helpless and controllable – there is NO other reason for his actions. Think about it people. We are all alone in our efforts to keep our country’s freedoms and give our kids a real future. We must come together and not let the liberals turn us into a New Zealand. Their socialist government controls even the amount of energy they use – all the way down to amount of lights allowed on at nite. I have visited New Zealand and couldn’t believe how conrolled the people were. It’s beautiful – north and south island – but they are not free to live their lives like we are used to. I do not want to live like that, with government control. Wake up America! Our financial situation is just the tip of the iceberg! Obama wants control of financials, energy and healthcare. ASk yourself WHY???

By: Bob McTeer

Bob McTeer — Fri, 20 Nov 2009 16:32:07 +0000

Surfgeezer:

You are absolutely correct about distinguishing between tariffs and other protectionist measures and market-determined exchange rates.

I find it odd that financial commentary these days is moving away from the concept of market determined exchange rates, even though it is a Milton Friedman idea that is consistent with his free market views on other things.

Thanks for the comment and the link.

Bob

By: Bob McTeer

Bob McTeer — Fri, 20 Nov 2009 16:27:48 +0000

Nemo:

You have a point on creditors and counter parties.

Mr. Greenberg, former AIG CEO, was on the panel as well. He complained about the Fed not negotiating a better deal with AIG’s CDS counterparties. Apparently AIG had already been negotiating for concessions. Ironically, though, the rationale for the “bailout” was not to save the “bailout–ee” but to prevent the collateral damage. To bail out a firm then start picking winners and losers among the counterparties is sort of a contradiction–albeit an expensive one.

By: Bob McTeer

Bob McTeer — Fri, 20 Nov 2009 16:21:46 +0000

To T Le:

I’d hate to break them up, but I don’t have a solution of my own. In retrospect, maybe repealing the Glass-Steagall Act was a mistake, especially not amending the regulatory structure at the same time. For the record, I supported the repeal.

Ron Paul’s proposal is coming up next.

Bob

By: surfgeezer

surfgeezer — Fri, 20 Nov 2009 06:43:35 +0000

Just came across your blog and I am impressed. Like the lack of political fervor and IMHO accurate assessment. Hope you don’t mind if I display link. The last paragraph does bother me however. The Chinese are calling us protectionist for demanding they delink and letting our dollar fall. I do not agree and after reading your blog on the dollar believe you do not feel that way. Smoot-Hawley was a mistake but we must be careful in differentiating between tariffs and demanding free markets exchange from a controlled economy even though the effect may seem the same to the Chinese.

By: T Le

T Le — Fri, 20 Nov 2009 02:54:06 +0000

Sir,
Thank you for your comment on cpi/ppi.
What do you think of Dallas Fed Reserve President Fisher’s opinion on banks that are too big to fail should be broken up? What is your opinion of Rep Paul’s bill to audit the Fed?
Thank You.

By: EHROSEN

EHROSEN — Thu, 19 Nov 2009 05:22:37 +0000

Are you implying that a double dip is more likely than a V recovery? If so, I think you are right.
Thank you for your refreshingly non judgmental perspective.

By: John B

John B — Wed, 18 Nov 2009 23:56:07 +0000

How are investors “misled” by a AAA bond rating? Who or what is responsible for making a bond’s AAA rating “midleading?” Do you believe that large banking institutions unknowingly sold “misleading” AAA rated bonds?

By: Nemo

Nemo — Wed, 18 Nov 2009 23:44:30 +0000

They didn’t benefit from a “heads I win, tails you lose” proposition. They had won for a while; then they lost.

Great! (Most of them still look obscenely wealthy to me, but my standards are probably just too low.)

Now, how about their creditors and counterparties?