If you skimmed past Insty’s link to this jaw-dropping missive, I highly recommend it. This is an outraged, moral hedge broker who shut down her fund. Why? To protect her clients from remorseless thieves…our government and its cronies.
If we could hot-swap Ann for Eric Holder, America’s chances for survival would be vastly improved.
About the bailouts, I’d never say, “I told you so”. You guys weren’t fooled either. Of course we’re not “trained economists” like Megan McArdle. But as the glorious Ms. Barnhardt said in her missive,
Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global.
So I do want to say: “I told you so the best”. Economists spewed “six-dollar words and uber-technical jargon” to justify those bailouts. The wormy diagnosis was a bit simpler. (Though it also branced out into a nautical theme.)
If that first analogy isn’t the best dad-blasted one on the subject, you must share your paragon of parables.
“Gangrene versus amputation”. Market adjustment is amputation, the loss of economic limbs. It’s not something to take lightly. But even if the collapse was as bad Megan & Co. feared…amputation would still have been the right treatment. Because when you leave a gangrenous member in place for dread of its loss…when it’s “too big to fail”…you feed
Corzine corruption. (On second thought, strike-out that strike-out.)
Maybe letting the next batch of institutions fail will wreck the entire global economy. Maybe by now it requires amputation at the waist. If so, the whole thing is on the deathbed anyway, gasping its last. So, no more bailouts.
Because the economy will remain diseased until we cut the markets loose and cut Corzine out. Him, and the rest of the filthy rot.