Another bailout of a financial institution…..?
February 6th, 2011 Filed under: New Business Loans — Small Home Business Author
Becca asks the question: We’ve seen the questions asking if the government should bail out those who took out subprime loans….now I ask if it is the governments place to bail out a financial institution for the mistakes of the management of that business?
“NEW YORK – Bear Stearns Cos., one of the most venerable names on Wall Street, turned to a rival bank and the federal government for a last-minute bailout Friday to prevent it from collapsing.”
Why should we bail them out….how is it our fault that they are about to collapse from their bad decisions?
Amos…it still doesn’t answer the question as to why we should bail them out. I feel sorry for the investors and those who have their 401k savings in jeopardy because of bad management practices…but isn’t this the risk that we take by investing? why should tax dollars be spent to bail out this private institution?
Answer:Remember this when another business man wants more tax breaks.
In a truly free market they would be forced to bear their own responsibility for their poor business practices.
But since the entire economy is predicated on our financial institutions being sound we may have to do something, but only as a last resort, and only with strict guidelines in place to insure it never happens again.
Its telling to note that some firms in trouble don’t want federal money…because they know it will involve an exposure of their careless and in some cases reckless business practices, and they don’t want to be subject to that, or the fact that their cash cow will come to an end with regulations.
I just hope we don’t give them the money without the regulations and a good audit.(Politics)
