Saturday, April 4, 2009

The Banker Who Should be Getting Bailout Money

One of the most annoying aspects of the bailout is that it is giving money to the worst offenders. There were a great many banks that were quite responsible throughout the boom, are not in debt, and in some cases are even using the crash as a time to dramatically expand. If we gave the bailout money to these responsible bankers, and let the less responsible financial entities go bankrupt, they could buy up assets of failing companies putting them in the hands of people who are quite a bit more trustworthy. Instead those few responsible banks are finding that they are eligible for next to nothing, and the irresponsible banks are getting propped up despite their failure.

Here is a great article on one such banker, who pretty much completely stopped making loans for four years when it was obvious the market was irrational, and is now stocking up at assets that are now priced at reasonable levels.

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