Lawyerkill <Lawyerkill@[EMAIL PROTECTED]
> wrote in message
news:a41f12ac-3340-4345-96eb-cb35fb170290@[EMAIL PROTECTED]
> We should not bail out BSC
Maybe not, but consider this for what it's worth:
Everybody has their "theories" about what caused the FIRST (did
I say that?) "Great Depression". Do you remember what Milton
Freidman claimed was the cause?
Anti-Semitism.
That's right, he said anti-Semitism caused the FIR..er, just kidding,
"Great Depression". He said the Fed was bailing out banks right and
left in the years leading up to the "Great Depression", but then one
day a sizable bank that was owned and run by Jews got into trouble,
and the "Robo Alien"s that ran the Fed at the time decided NOT to
bail it out. He said this led directly to the bank runs that sealed the
economic destiny of the nation (and world)...
Well, at least that's HIS theory, I'm sure "Robot Alien" has one that
is pretty much the exact opposite, in terms of racist parochialism at
least. But probably racists of all races will agree that the failure of
a large financial institution is not a "good thing" and MIGHT lead
to a replay of 1929-1933...
But there's another wrinkle to consider: the idea that there may
not be a big enough bucket to actually bail out not just Bear, but
many other large institutions as well (I'm sure the doomsters here
HAVE considered it, but not really THOUGHT about it in a logical
and mathematically rigorous fa****on).
People keep talking about "we" shouldn't bail out this bank, the
other bank, but what the Fed and the other big institutions are clearly
trying to do lately is actually "spreading the damage" around the whole
"system"...my only contention is that whether you agree with or
believe this or not, the damage will inevitably be spread no matter
what in AT LEAST the precise amount "lost" by Bear, just as the
"benefit" of the upward climb of the latest (multi-decade?) credit
bubble was similarly spread throughout the system...as "investors",
our job is to position ourselves to collect the maximum "benefit"
as the bubble expands and protect ourselves from the maximum
damage as it bursts...
---
William Ernest Reid
Post count: 967
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