Wednesday, October 31, 2012

Economist, Thomas E. Woods, On Bailouts and Regulations

"Try letting a few major firms - yes, even in the financial sector, where we superstitiously believe no failures can be allowed - actually go bankrupt for a change. Make perfectly clear once and for all that there will be no bailouts, no looting of the public, on behalf of any firm, period. That would do more to jolt the financial sector into being sensible and cautious instead of reckless and irresponsible than all the regulatory tinkering in the world."............Hm, sounds good to me.

6 comments:

dmarks said...

The "to big to fail" is a dangerous and invalid concept from the Left that does nothing but justify massive corporate welfare, get rid of any corporate responsibility and accountability, and encourage reckless behavior by large institutions.

Will "take no prisoners" Hart said...

I can't blame the left entirely on this one, dmarks. Greenspan (who Bush should have never reappointed) long had a reputation of being "Mr. Bailout" (the Mexican peso, Long Term Capital Management hedge fund) and it was him who, more than anybody, created what was clearly a bailout culture.

dmarks said...

Of course. Conservatives used to be a lot more for it. Now it is the Dems who are hardcore for giving cash to corporations. Or doing for them what they can do themselves.

Will "take no prisoners" Hart said...

Mr. Obama with G.E., Fannie and Freddie, Goldman Sachs, etc.. Yeah, I suppose that a case could be made for what you're saying here.

The Heathen Republican said...

I say "amen." Based on the anti-corporatist rhetoric from the left, it shouldn't even be hard to get bipartisan agreement on this one.

dmarks said...

Will: Or TARP. While Bush did sign it, Senator Obama voted for it too... and most Republicans voted against it.

And the tens of billions outright given to the auto industry so they could shop jobs to China and open Jeep factories overseas.... most Democrats for (most famously Obama) and most Republicans against (most famously Romney, who wanted the companies to go through traditional bankruptcy... something that would have let the companies and jobs survive but at $0 cost to taxpayers).