A thank-you note for the federal government

[rowyn]

Warren Buffet's thank-you letter for the 2008 bailout.

It pretty well sums up how I feel. It reminds me that Warren Buffet was, during that month, one of the few private investors still willing and able to express confidence in the market himself. He poured money into Goldman Sachs, I recall.

But when businesses and people worldwide race to get liquid, you are the only party with the resources to take the other side of the transaction. And when our citizens are losing trust by the hour in institutions they once revered, only you can restore calm.

Yes. That was it. I'll never know if it was the right thing to do or not, but I think they did a pretty good job, under the circumstances.

Comments

[shockwave77598.livejournal.com]

We have regulations on those who build buildings and roads. Why? Because a failure to do the job correctly can cause ruin and harm. So why should all these banks like Sachs Goldman be able to gamble with the country's future and not have to worry about going bust (because Unca Sam will cover their gambling debts) have no regulations? Society cannot survive without rules -- a marketplace is no different.

The bailout worked. But if those incompetent enough to require them don't get new regs so their short term thinking won't ruin them, then it was money wasted and we should have just let them fail. I don't think that government has all the answers, no. But it's clear that letting companies do anything they want without rules is worse.