Fleckenstein on government intervention

[Valuist]

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/whatever-we-do-it-will-be-wrong.aspx

[classhandicapper]

Great article. Fleckenstein has always been one of my favorite reads. He's one of the few guys that actually "gets it".

[riskman]

Thanks for posting the MSN money article. Must have read numerous articles on this subject--this by far the best for clarity.

[HUSKER55]

Good article. Raises a good question that I think needs to be addressed. That is how big is to big.

Take this simple exammple. When Walmart comes to town the small "family stores" generally take a huge hit and end up closing. Then down the road that company runs into problems and huge numbers of people get laid off and end up depending on government.

That will not work. Put party politics aside.

It happens all over, everyday. One airline buys out another and bellies up or announces cutbacks. Didn't that happen to Delta, Southeast and Midwest?

Look at the brokerage houses or any industry for that matter.

It appears to me that if government is going to bail people out then government had better be for earning money or managing better.

We fire CEO's for this and there should be away to make government accountable and a way to punish those in government who betray the peoples trust.

You can not keep exporting jobs and expect different results. The United States can not be everythig to everybody. Free trade zones and bad tariff agreements are also to blame.

I am not against the buying and selling of "the paper" but why should the taxpayer be responsible for bad decisions. If the UAW wants to build cars and compete in a global economy then they have to figure out how to do do it. If wages are to high or corporation executives are getting too much money and perks then they need to adjust. Why send the bill to the taxpayer.

I am very leary of any quick fix program here.

I equate this on the same level as closing a school and building a prison and calling it progress.

Where am I wrong?

Thanks

husker55

:)

[jonnielu]

Good article. Raises a good question that I think needs to be addressed. That is how big is to big.

Take this simple exammple. When Walmart comes to town the small "family stores" generally take a huge hit and end up closing. Then down the road that company runs into problems and huge numbers of people get laid off and end up depending on government.

That will not work. Put party politics aside.

It happens all over, everyday. One airline buys out another and bellies up or announces cutbacks. Didn't that happen to Delta, Southeast and Midwest?

Look at the brokerage houses or any industry for that matter.

It appears to me that if government is going to bail people out then government had better be for earning money or managing better.

We fire CEO's for this and there should be away to make government accountable and a way to punish those in government who betray the peoples trust.

You can not keep exporting jobs and expect different results. The United States can not be everythig to everybody. Free trade zones and bad tariff agreements are also to blame.

I am not against the buying and selling of "the paper" but why should the taxpayer be responsible for bad decisions. If the UAW wants to build cars and compete in a global economy then they have to figure out how to do do it. If wages are to high or corporation executives are getting too much money and perks then they need to adjust. Why send the bill to the taxpayer.

I am very leary of any quick fix program here.

I equate this on the same level as closing a school and building a prison and calling it progress.

Where am I wrong?

Thanks

husker55

:)

The taxpayer gets the bill because he/she has been happily pre-paying them without question or any other action to the contrary for over 100 years.

jdl

[ddog]

i do have a problem with the paper only crap, the money from money deals that have gone to extreme.

it's not that it's totally bad , but more what it says about the underlying economy and the lack of rewarding alternatives that drive increase in these type of deals.

this has all played out before to varying degress and it wasn't of lasting good then either.