« ON WHAT THE WORLD NEEDS RIGHT NOW | Main | ON CONNECTING WITH MICROSOFT AGAIN (Part II) »

Wednesday, September 17, 2008

Comments

Alex Tolley

I'm not so sure about the alternative history for Chrysler. Chrysler was bought by Daimler and when that was obviously not going to work, was bought by Cerberus. And Chrysler is responding to the new world of high gas prices how? GM and Ford are still basically in denial too, so the Cerberus acquisition of Chrysler hasn't done much to sharpen them either.

As to the wider point about bailouts not helping fundamentals, I generally agree. As long as the financial institution bankruptcies don't create massive system risk, then they should be allowed to fall and make way for new organizations. So far the Bear Stearns and AIG bailouts, not to mention Fannie and Freddie, indicate that the Federal Reserve has substantial worries about this.

What is not clear to me is why the bailouts don't go all the way and effectively take over the firms. AIG is being given a loan - so if they manage to rescue themselves, then the owners have truly privatized profits and socialized losses.

What is amazing is how tentative the call for regulations are, despite the clear message that deregulation (and lack of regulation enforcement) has got us into this mess, much as it did in the 1920's...

Funny how "Gilded Ages" seem to collapse from their own hubris.

The comments to this entry are closed.

Twitter Updates

    follow me on Twitter

    Enter your email address:

    Delivered by FeedBurner

    Recent Readers


    Some of the Blogs I Like

    May 2021

    Sun Mon Tue Wed Thu Fri Sat
                1
    2 3 4 5 6 7 8
    9 10 11 12 13 14 15
    16 17 18 19 20 21 22
    23 24 25 26 27 28 29
    30 31