I have to say I agree with MakoMike. I do not know how you can do this legally without drastically changing the way business is done but it is very problematic that these Wall Street guys take down millions in comp every year and when their business is threatened because of their recklessness the taxpayers have to pony up. Meanwhile these guys get to keep all their gains from the years running up to the crash.
The government should charge all the banks a yearly fee for being the backstop. No private workout company would ever do a deal without taking a big piece of the potential upside yet the government using our money step in every 7 years or so and gets these guys back on their feet and we see nothing from it.
The worst part is that the average Ed who saves his money and is up to date on his mortgage will never reap the benefit from a low interest rate. The mortgage rate won't go low enough to refi, but the interest rate on any savings will go deeper into the toilet than it already is.... Meanwhile the institutions getting the ultra low interest money from the taxpayer will turn around and invest it in T_Bills and make even more off the back of the taxpayer and their balance sheets will look great.
Kind of ironic the DJIA was up 420 yesterday
Last edited by Fishpart; 03-19-2008 at 07:54 AM..
“It’s not up to the courts to invent new minorities that get special protections,” Antonin Scalia
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