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|Subject: Re: What Were They Thinking?||Date: 11/14/2007 4:29 PM|
|Author: Goofyhoofy||Number: 22087 of 35498|
That's precisely why we must refuse to bail them out and let one (or more) of the big players abjectly fail. It would serve as an excellent lesson.
Unfortunately the lesson would redound to the entire economy, not just the parties involved in the transgression. In 1929 nobody stepped in to stop the excess (OK, a couple of players tried, but they weren't big enough to overcome the grotesque amount of margin and chicanery which had built up.)
[The heads of Morgan, Chase, and National put together a syndicate to "buy" the crashing stocks, to give confidence to the market, to show folks that there was "a bottom." The VP of the NYSE waded out and bought a huge block of US Steel, then other blue chips, then... well, you know the rest of the story. This is not unlike what happened in 1907 when the market crashed and JP Morgan (and a band of other captains of industry) stepped in to staunch the bleeding. That time, miraculously, it worked.]
Saying "It serves them right" is thin gruel when the wealth of the country - and confidence - and ability to form capital - and employment are washing down the river on a tide of self-satisfaction.
And that's why people are looking to government (among others) to figure out how to softly land this latest fiasco, brought to you by the good folks at Greed-R-Us, and "please deregulate us and let the market handle everything, because the market is never wrong."
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