Here's some fun reading for you for the day. The column is in the Boston Review, is written by Eliot Spitzer, and discusses one persons' opinion of the proper role of government intervention in capital markets.
I don't always agree with Spitzer, and some of his actions during his stint as Attorney General for New York were bad for business (in my humble opnion). But I always appreciate someone who stirs the pot, asks tough questions, and refuses to back down, even if he isn't always right (in my humble opnion) or uses the occasional hooker, sorry, they prefer the term "escort".
Boston Review: Eliot Spitzer - The Rules
Here's a quick excerpt:
"The biggest problems come from the terrible idea that some firms are “too big to fail.” Those who have analyzed the return of equity of major companies understand that when companies get that big they underperform because they cannot be managed. Too-big-to-fail is too-big-not-to-fail. But the major companies are now bolstered by what used to be an implicit and is now an explicit backstop of federal government/taxpayer guarantee on their debt. That guarantee—capital at virtually zero cost—does not improve company performance; it subsidizes continuing underperformance." Amen - preach on.
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