A Bailout Lesson From The Past

Two days after the nationwide tea party protests, I’m sitting in an office waiting to be called up to the window.  As I pass the time reading, I come across this, during a conversation about hypothetically bailing out failing banks:

“But there’s no reason why any bank should do what you suggest, it never has in the past.  Each bank stands or falls on its own merits, that’s the joy of our free enterprise system.  Such a scheme as you propose would set a dangerous precedent.  It would certainly be impossible to prop up every bank that was mismanaged.”

–James Clavell, Noble House, 1981

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s