James Grant from “Grant’s Interest Rate Observer” on the Bailout

November 13, 2008 by · Leave a Comment
Filed under: Videos 

This is a great video with James Grant of “Grant’s Interest Rate Observer” which is a financial periodical.  This discussion is about our current financial system bailout that is in progress and the scandal it has caused.  James mentions the lack of enforcement of punishment for reckless individuals at the different firms.  He wants a defence of Capitalism & Free Markets, I absolutely agree with his assertion.  We have throw the free markets aside to bail out firms that should absolutely face the consequences of getting into their current position.  Greed took over and now Fear has to be revived.

We need to get the excessive leverage out of the system.  Firms that have committed acts that warrant their firms “insolvent”, should be liquidated and forced out of business.  Why do we not let firms that have made good decisions prosper? Why not have firms that made bad decisions, suffer the consequences? Why does precedence all a sudden not matter when we deal with market issues? Decisions we are making now will have a long term effect that we are not taking into account if we want a functioning market system.

Bloomberg Video:

Hope you enjoyed this video

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