Quote:
Originally Posted by peter12
What a joke. The market will sort itself out. Poor American taxpayers on the hook because Wall Street companies can't figure out a good business plan.
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Hank Paulson of all people agrees with this sentiment. His view has been one of not wanting to bail out the shareholders and investors, but still save the banking system and really the financial well-being of the western world.
I do agree with some of the comments made here regarding the riskiness that CEO's might feel compelled to take on now, as the government would just bail them out of bad decisions.(This is basically the definition of moral risk btw, in case you read it elsewhere). I think and hope that this is a simplistic view though. I consider this as a single-case scenario where nothing was done for far too long when there were issues...eventually that leads you to a crisis.
As far as the CEO's and such walking away with cash it is extremely unfortunate, and needs to be addressed. Unfortunately though you cannot let everything collapse to prove this point.