I don't believe Obama should have taken the auto industry risk (he only did so for Union jobs) , or the AIG (because AIG didn't have enough capital and was at risk for highly leveraged derivatives and other trading "chips" in the big casino) risk for that matter. Those companies, and many others, should have been left to suffer whatever losses the free-market, risk-taking system saw fit to visit on them. And, that's still a problem, solved by increasing the equity capital (shareholder's capital) at risk; then losses would be "enjoyed" by shareholders and equity owners, not taxpayer's.
And, the recent BOA losses from similar "hedging" trading strategies wwre covered by earnings and capital in the bank.
While we're at it, I favor a Surplus Budget and paying DOWN debt, not increasing it; I favor no more "off book" wars; if we are going to fight, let Congress pass approval and a Budget to pay for it.
Read the Article at HuffingtonPost
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