"But analysts said it was clear that JPMorgan Chase was getting an extraordinary bargain, buying Bear Stearns at a tiny fraction of its market value just one week ago, and with the Fed shielding it from much of the risk."
"But analysts said it was clear that JPMorgan Chase was getting an extraordinary bargain, buying Bear Stearns at a tiny fraction of its market value just one week ago, and with the Fed shielding it from much of the risk."
4 comments:
Another perspective:
http://www.slate.com/id/2186792/?from=rss
And relative to many other economies, it is a fairly free market.
http://en.wikipedia.org/wiki/Index_of_Economic_Freedom
First of all, I'm not sure what the "[other] perspective" was supposed to be contrasted with. Actually I'm not even sure what the point of the article was.
Yes, relative to many economies, the US is fairly free. So? [Also, I instantly distrust anything that says "Heritage Foundation" on it. Look at where their money comes from, and you will too.]
The only point of my post is the ridicule people who constantly tout the virtues of the free market, unless the free market hurts their financial interests, in which case by all means, the government should intervene. This is a textbook case.
I think if you're a REAL free market person (and by that I mean anarcho-capitalist or at least a raving libertarian) you also have a problem with this bailout, because it creates a moral hazard that encourages non-optimal market behavior - if the government will always come and bail you out, it will rationally cause you to discount risk somewhat and therefore encourage the sort of shenanigans that got financial institutions into this credit mess to begin with. I often wonder if people with those kinds of views REALLY believe them, or the fact that their so outlandish that they can never become reality leads people to be able to profess a belief in them. Presumably the bad consequences of government non-intervention would be so bad that when it actually came time to just stand back and let everything crash and burn, I bet they would quiver a little.
PS fuck a "their" "they're" error how embarrassing.
PPS "Here here" to fucking the Heritage Foundation and think tanks in general.
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