"Congress and the White House are now attempting to right past wrongs with bailout schemes -- some aimed at lenders and others at borrowers. And of course, the Fed is being called on -- and has willingly obliged -- to provide more easy money in the hope that more of what created the problem can solve it.
The latest example by the Fed: Handing JPMorgan Chase a $30 billion credit guarantee to get it to buy Bear Stearns.
The insidious and dangerous unspoken corollary to all this: Financial pain is now unacceptable. Those in trouble demand to be rescued, and the government seems to agree that the "creative destruction" component of capitalism must not be allowed to do its work. It's a sad irony that as former communist countries embrace capitalism, we seem to be headed in the other direction."
- Bill Fleckenstein, "Contrarian Chronicles"
March 21, 2008
Here's the link to the article:
Monday, March 24, 2008
Bill Fleckenstein is my hero! FJ Quote of the Day
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