Monday, March 30, 2009

Banana Republic Datapoint #X

So yesterday our fearless leader fired the fearless leader of a major industrial company. This is the latest in a string of actions that will undoubtedly make the US a worse place to be in the future. To recap:
- A business facing a failure can be let to fail, married or bailed out. You do not know which.
- Your competition gets government backing instead of going out of business, and competes with you on the taxpayers' dime (see Buffet's latest letter for an example)
- You were better and the assets of your failed competition should come to you. Instead, our elected officials reward the failures with taxpayer cash
- The government is engaging in industrial policy overtly: select sectors are bailed out, mandates management changes, retroactively determines compensation, changes its mind on spending quickly (think infrastructure), manipulates the bond markets (and the entire securities market by extension)...

This is not good and will not end well.

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