by Ceri Shepherd, financialsense.com
These clowns never ever learn, and why should they? When the easy lessons of years of accumulated moral hazard is simply “whatever we do the Government will rescue us”. Now we are supposed to believe that Henry Paulson the ex CEO of Goldman Sachs one of the major players in this latest Wall Street blockbuster disaster has a cunning plan, a solution to solve the problem. It is nothing but another Wall Street Scam, and here is the reason why.
There is nothing wrong with the assets that the banks hold, they are not impaired in any way whatsoever. They are just not worth what the bankers would like them to be worth. Everything has a price, and everything has a buyer. You simply keep dropping the price until a buyer steps forward. It is called the free market.
Remember Gordon Gecko in Wall Street “I loved it at $15, it’s an insult at $17”
If this sham of a bailout proceeds the taxpayers will find out the hard way what the real price of these “assets” are, long after the bankers “sell” TO THE ONLY BUYER AVAILABLE the American taxpayer at the artificially high price rigged by Mr Paulson.
IT IS THEFT PURE AND SIMPLE. OFFLOAD THEIR RISK AND MAKE IT OURS. THE TAXPAYERS WILL BE LEFT HOLDING THE GARBAGE.
If the assets are not worth what Wall Street would like them to be worth, that is Wall Streets problem and Wall Streets alone. They took the decision to ignore any sensible valuations, to ignore all the busts of history and embark on this reckless business model. They are private companies, making private decisions if those decisions are wrong
THEY SHOULD GO BUST, you either believe in the FREE MARKET or you end up with this wacky command and control soviet style economy.
