Socializing losses and privatizing profits. Interesting sort of
asymmetrical market economy.
arthur cordell
----------
From: tom abeles
To: Ed Weick
Cc: [EMAIL PROTECTED]
Subject: Re: Bringing down the MAI
Date: Tuesday, May 05, 1998 7:29PM
Ed Weick wrote, in part:
>
> As you may have guessed, I am something of an elitist, and may even be
> neo-con or neo-lib, though I have not had my blood tested recently to find
> out. I do not believe in mass movements, and have a low opinion of
> democracy as currently practiced. .. Mobilizing these people into digital
mobs via the Internet
> scares Hell out of me.
>
> I do believe in free and open trade and have felt the MAI to be a good
> thing. We live in a complicated but open world in which the absence of a
> common set of rules about things as important as international capital
flows
> is hazardous - witness the Asian meltdown.
--------
Ed
i grant your position. But here is the catch. When the melt down
occurred in SE Asia and when the Mexican crisis occurred, the bailout
was on the backs of those masses and not on the backs of the capitalists
who had moved their money out or who, when their funds were trapped, got
the governments to bail them out at the citizen's expense.
Now if you and the rest of the investment banking community were to take
the risks along with the rewards, then cut your deals in private- thats
your biz. But when the MAI is sorted out and one understands the
ramifications, the risks are not proportionate to the rewards needed by
the investment community. After all isn't that how Lloyds of London got
started with the risk takers hedging their bets with other risk takers
and not on the backs of the citizens?
There in lies the issue. So, should Sumotomo and Morgan Stanley call you
up and ask you to organize the cost of the recovery? Hmm maybe there
might be some generals in SE Asia who might have a conscience and join
you.
cheers
tom
