That title above is taken from Barry Ritholtz’ at Big Picture blogs on the NYT op-ed piece (How the Fed Can Fix the World) by Roger Altman.
If taxpayers are going to be on the hook for the bailouts, than we should be able to set the parameters of what is allowable in terms of capital minimums and leverage.
Yes, this is regulation. No, this is not a Free Market policy. But neither was the bailout of Bear Stearns, nor the Housing Bailout, nor the imminent bailout of Fannie and Freddie and maybe even FDIC.
Smart regulation can enhance market growth and eliminate much of the gaming by the sharp-practicing denizens of Wall St. Unfortunately since it’s the gummint making the rules, practically everyone potentially affected by new regs is, understandably, dead set against it.
Tough toenails, shoulda played fair, now you pay piper.
Oh yeah, first amendment to the rew rules- anybody that work/s/ed for a coorporation that gets bailed out by the gummint owes taxpayers 90% of the any personal wealth accumulated through the exercising of stock options, or for shares awarded, or for sale of any stock not purchased outright beforehand. Let us also make this retroactive 15 years, so we can make up for lost opportunities.
If we’re going to socialize risk, then that’s where we start. Tis only fair.
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Extracurricular reading
What’s the difference between crony capitalism and communism? Not much, really. [Jesse's Café Américain blog] [Mostly Economics]
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DESPERATE times call for continued DESPERATE measures by increasingly DESPERATE people.
