From Bill Fleckenstein's Market Rap: "George (Soros) followed up his editorial by telling Congress that the Mexican bailout created a severe moral hazard for lending institutions because they were made whole. This has been a sort of hobbyhorse for me. To put my words in George's mouth, Mexico was the quintessential example of moral hazard. Many of the problems we are seeing now are a result of the terrible example we set by bailing out everyone in Mexico."
Tom Yarnall (and Ron Bower),
Isn't the above exactly what you both are saying about hazards of the IMF stepping in to bail out troubled economies? I believe this was Tom's viewpoint a while back when we were discussing it. The IMF wasn't involved in Mexico, but the example of a, "bailout" is the same, nonetheless.
Kind of ironic that George Soros is feeling the same way? Or did I get something wrong? I didn't pay detailed attention to his remarks, but I believe he was...well this post is going nowhere. I need to gather some more facts.
But feel free to comment. Tom, as I recall, last you and I left it, you were starting to form an opinion regarding the IMF. That was a few months ago. Have you come to any conclusions. I would like to hear your opinions if you have formed any.
Thanks,
MikeM(From Florida) |
