Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Richard J. Byrd who wrote (10456)	11/26/1997 4:29:00 AM
From: George Acton	Respond to of 94695

"free markets should be free" The Kindleberger book on bubbles and panics is concerned with the problem of when governments or monetary authorities should step in as the lender of last resort. The answer is that there is no general answer. If speculators know they will be bailed out, they are even more rickless. OTOH, if the authorities don't intervene, a lot of innocent people get hurt in the fallout. One sensible way, which we're abandoning, of course, is to have a range of institutions with different levels of risk. If people want guaranteed deposits, they put money in a regulated bank that is forbidden to take certain risks. If they can afford the risk, they hand money to Neiderhoffer. That seems to allow for maximal freedom, as well as the benefits of an organized society. --George Acton

To: Richard J. Byrd who wrote (10456)	11/26/1997 5:31:00 AM
From: Jack Clarke	Respond to of 94695

Dick: I think we are saying the same thing. I may not have expressed myself as well as I wanted. I certainly do not want the govt stopping that put buyer from putting his money up. Just the opposite. I was trying to say that after people do foolish things -- like buying the S&P at five times book, or after banks loan money that can never be repaid -- these foolhardy acts should not be bailed out at taxpayer expense. This is what I meant by leadership. In fact we have the opposite -- lack of leadership -- by govts printing money and keeping the party going to keep themselves temporarily in office. Jack