WSJ--'We won't have a real market-based financial system until it is safe to let a financial firm fail,"
Federal Reserve Chairman Ben Bernanke said last week.
He's certainly right, though you wouldn't know it from Mr. Bernanke's own actions the last two years. Meanwhile, the politicians are preparing to give the Fed and Treasury more power to bail out all and sundry companies on an unprecedented scale, and so far without any objection from the Fed chairman.
Reading the pending bills to "resolve" failing financial houses from Representative Barney Frank and Senator Chris Dodd, the challenge is to conceive of someone who is not eligible for unlimited taxpayer funds. The list of potential bailout recipients under both bills runs from bank holding companies to hedge funds to auto makers, consumer retail chains, the Catholic Church, Goldman Sachs, AIG, Nicolas Cage, the Madoff Family, the Republican Party, the Democratic Party and just about anyone else engaging in finance or home economics of one kind or another.
WB7: The above quotation is made by a very confused man who seems to think that financial firms can only fail if it is safe for them to do so. Is this the new definition of market capitalism?
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