Because I am appallingly inadequate in my knowledge of economics I am reluctant to offer opinions or analyses in this area.
But in Bear Stearns case, I will make an exception - because the offense against us is so grave, so brazen and so understandable (even to me).
For twenty years I lived in NYC and the Hamptons and hung around with Wall Street guys. I know them. I know they have $25 million Hampton beach houses and $200,000 cars. They get $5 million Chtistmas bonuses. When they are 28 years old.
I am a big capitalist, so I have no problem with what they have earned or how they send their money. However, I have a huge problem with how they spend Ours.
You see, while Bear Stearns, et. al. was making money, they were keeping it. Fine. But when they threw Other Peoples' Money into ludicrously risky financial deals, and those deals collapsed, they didn't give back their cars and houses - as you and I would have to do. No, big the Wall Street players kept all their winnings, and stuck You and Me with the bill.
That is what the federal government did this week. They bailed out riverboat gamblers with the money you earned.
Quick: think of something you bought or invested in that went bad. We all have. But you didn't get a do-over. You didn't get your money back, and you're not going to.
No. To get that kind of deal you need to be a Wall Street Big Shot. Then, when things are flush, you keep it all. And when your bad decisions turn sour,...you still get to keep it all.
Because suckers like Me and You have to bail you out.
It's the law.
And it is a disgrace.