Bailing on the Bailout

David has an interesting post up about the recently defeated “Bailout Bill.” There are some interesting takes. Charlie gave me a copy of a Time article which basically asserted that the Gordon Gecko comment was/has been the Wall Street philosophy. When it comes home to roost it is another matter. I am left wondering what is lost if we get back to real values? I really like the logic that suggests we need to pay the CEO’s large sums in these bailout moves because we need these sharp people. That’s right, we need to reward those leading companies making bad decisions leading us to this crisis. I sure could not get by on that kind of thinking. Sure hope we avoid that one. As a potential share holder in those companies to be bailed out under any new bill, I want to vote. I will not give my proxy to Congress.

About the Author
Husband to Patty. Daddy to Kimberly and Tommie. Grandpa Doc to Cohen, Max, Fox, and Marlee. Pastor to Snow Hill Baptist Church. Graduate of Oklahoma Baptist University and Southwestern Baptist Theological Seminary. Reading. Photography. Golf. Colorado. Jeeping. Friend. The views and opinions expressed here are my own and should not be construed as representing the corporate views of the church I pastor.

2 comments on “Bailing on the Bailout

  1. Charlie says:

    You know the market rewards good behavior as well as punishes bad. The problem is the market is valued at current market prices meaning what would it sell for tomorrow. Not what is its true value. Our markets up until recently have been on a different value system. Looks like we need to go back no matter how painful as it worked for 200 years.

    For those that say the USA is no longer a financial super power well I would think that yesterdays chicken little reaction on the world financial front would say otherwise. Note as well that the European banks rushed money into their systems to prop up their economies as well.

  2. Todd Littleton says:

    There is little doubt we have operated at less than a value market. That is, how many companies trade at extreme multiples based on what they may be worth – some have never earned a penny. I know. I once traded options on just such companies. When they tank, so does your bottom line. Seems like we have been holding options set to expire thinking they will always go up. The call has been made and we cannot foot the bill.

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