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Wall Street bonuses are in the news today. As I listen to the "talking heads" on the subject I can not help but be amazed about why so many "smart" people ignore the obvious.
The bonuses being paid clearly gives evidence that the financial sector was not on the brink of catastrophe.
The bailouts simply gave the financial sector an easy way out of a difficult situation and allowed them to profit from it. Rather than the financial sector going to the private market to enhance their capital at private market rates, they got "free" money from the government. Rather than the financial sector selling assets at "fire sale" prices, the government stepped in and saved them from that cost. The speed in which the bailout money was returned indicates the money may not have been needed.
Bad firms who made bad decisions should have been allowed to fail.
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"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."
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