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« SuperMegaSpeed Review Marathon Marathon Forever Quest | Main | Blue Room show » Modern capitalism: Privatize the profits, socialize the lossesSo the question is: if Bear Stearns screwed up big time - as it did - with huge leverage, reckless investments, lousy risk management and massive underestimation of liquidity risk why should the US taxpayer bail out this firm and its shareholders? First fully wipe out those shareholders, then fire all the senior management and have the government take over such a bankrupt institution before a penny of public money is wasted in bailing it out. Instead now the use of public money to bail out financial institutions is spreading from banking ones to non banking ones. The Fed should at least give a clear and public explanation of why such extremely exceptional - and almost never used - intervention was justified. The finer distinctions are probably lost on me, but this doesn't seem too different than what we did in the 80s during the S&L Scandal (and we are still paying off the debt we created during that bailout). Seems the government is always there to bail out rich investors when their risky or stupid investments don't pan out. By fnord12 | March 17, 2008, 9:05 AM | Liberal Outrage |