Thursday, February 5, 2009

Bad Banks vs Good Banks

Couldn't have said it better.
“Free markets work well to flush out underperformers, giving soundly managed companies the opportunity to step up and fill the void. Government bailouts merely prolong the agony.”

— Wayne Silzel, responding to WSJ article "Business World: Obama's Dangerous Bank Bailout."
I would add that bailing out the bad banks also punishes the good banks. It really isn't the case that all the banks made bonehead decisions.

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