Archive for December, 2008

Bail Now, Sink Later

Posted in Running With Banks with tags on December 6, 2008 by talewis

”I am concerned about taxpayer money being provided to those companies that may not survive.” — President Bush

How far should taxpayers go to rescue an ailing industry? — Reuters

The chairman of the US Federal Reserve, Ben Bernanke, has recommended the use of more taxpayer funds for new efforts to prevent home foreclosures – The Sydney Morning Herald

To paraphrase Aristotle and Confucius, if you wish to have good government you must begin by calling things by their right names. And the notion that the American taxpayer is paying for things such as the financial-industry bailout, the automotive-industry bailout or even the war in Iraq is not right. It would be closer to the truth to say that the Chinese government is paying for these things. Continue reading

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Too Big to Bail

Posted in Running With Banks with tags on December 4, 2008 by talewis

A mind cartoon: a morbidly obese man is being escorted from a bank lobby by security guards, screaming, “But you don’t understand! I’m too big to fail!”

It comes to mind as the CEOs of morbidly obese American automobile companies wail to the Congress that what is bad for General Motors (or Ford or Chrysler) is bad for the country. Continue reading