No. of Recommendations: 2
I have very little doubt when we poke around in the bowels of the other actors in this drama (Citibank, etc.) we will find much the same thing; firms no longer content to have "good earnings", but who tried to skim off the gravy without understanding the risk they were absorbing at the same time. That's easy to do when times are good, and then it comes back and bites you and everybody says "Gee, that's a surprise!"

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. What kind of lesson will be served if we bail them out? And what approach will they take next time an outsized risk with commensurate outsized returns presents itself in the future?
Print the post  

Announcements

Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.