Wednesday, February 4, 2009

The slippery slope

Voltron says:  People are understandably upset that executives at companies receiving taxpayer bailout money are getting large bonuses.  Many of the companies in question were FORCED by the government to take bailout money because if only some companies were seen taking the money that would be seen as confirmation that they are weak and they would be targeted for destruction by speculators.  Goldman Sachs is looking to pay their bailout back immediately in order to cut the strings.  Bankers are gamblers and if you set up a situation where they can get an extra couple million in pay if they reject the bailout and manage to survive, they'll take their chances - slim as they may be.  It's fair to question why the government should be bailing anyone out, but keep in mind that as credit conditions worsened and banks wanted to stop lending their precious capital, the government twisted their arms into making loans that their better judgment told them not to make.  So now the government, by improperly exerting undue influence,  is morally obligated to help.

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