On Fri, Mar 20, 2009 at 7:16 AM, Gruss G wrote: > > > RoMunn wrote: > > - Free will. No government agendas for employment, no loss of personal > > freedom > > So then in your opinion the AIG executives deserve their bonuses? > > And we should take the controls off the entire banking system, > dismantle the FDIC, et al? >
That's funny, did you see the guy from the Ayn Rand Institute talk about that? He was saying we should do away with FDIC and even the Federal Reserve, which I frankly don't understand because then how do you deal with money? My basic rule for regulation is that no private entity should ever have power over the state. That's where we are with AIG right now. The potential consequences of an AIG failure are thought to be so damning that we keep shoveling money at them even though everyone knows it is wrong, wrong, wrong. That's why I say we let AIG burn in hell. But I would also say we ought to put in enough regulation to ensure that no private entity can have power over the state like this. That's means anti-trust enforcement, and specific controls and rules around derivatives so that everyone understands the government will not step in and save them if they make a fatal mistake. It also means that the government must have enough expertise and talent available to handle these big bankruptcies. Let's say it costs a billion dollars to push AIG through bankruptcy and unwind all the contracts they have. At this point, that's chump change. Will it cause a lot of other institutions to fail? Maybe. If so, the government needs to be prepared to handle those efforts, too. Does that mean nationalization? No, I don't think so. It means bankrupcty and either reorg or liquidation. Lots of pain in the short term, but no lost decade with zombie banks. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:292435 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
