Subject: Re: PR&C: Fairytale Comes To An End by jsup on 2008/12/5 17:32:48
Quote:
CentralCoaster wrote: I don't consider them loans that will be paid back.
The fact that the only one perhaps willing to "loan" them money is the government, means no private bank in their right mind wants that risk. In their current state, they are sure to fail, in which case, nothing will be paid back.
Hopefully it should be pretty clear by now that government doesn't have your best interests in mind and is the most wreckless money manager you could ask for.
Lenders drove this gravy train straight off the cliff, because the decisionmakers knew nobody would hold their ass to the fire when it all went down.
Welcome to smash-n-grab economics!
What's worse, is the government just put itself in a position of arbiter of which companies will live and die. Political considerations will be considered, not market based one. Do you save Phillip Morris? Or Mc Donalds? Or the manufacturer of solar panels?
