Quite a sad turn of events in my opinion.
This bailout will only make the markets riskier. The Treasury and the Fed are proposing the largest transfer of wealth from public to private in the history of the United States. All to bailout bankers, banks, and investors that made increasingly risky investments.
Just mind-boggling how it got to this point. These banks should be allowed to fail, the next best option would be for the government to do what it did with AIG, take equity in the company in return for a loan. This proposal by Paulson essentially places all the bad debt on the government's books and absolves private actors. Completely disgusting.
|