Financial Politics
I got forwarded an NPR article where Newt Gingrich (!) criticizes the bail-out plan. Some browsing around led me to this quote, with which I firmly agree:
"A fundamental principle of free-market capitalism is that investors take on big risks to reap big rewards - but they also assume any losses that occur. The government's plan would radically alter that model, leaving profits private while making losses public."
I've always been a very conservative investor, because I understand the meaning of risk, and I'm not willing to accept significant ones. I understand that I am effectively "giving up" on the possibility of striking it rich. And I've still lost (on paper) a lot of money -- even money in bonds. So if I can suck it up like a responsible adult, I don't see why I should be padding the falls of others with loftier ambitions. Sorry guys -- you decided you wanted to win big, and this time you lost.
"A fundamental principle of free-market capitalism is that investors take on big risks to reap big rewards - but they also assume any losses that occur. The government's plan would radically alter that model, leaving profits private while making losses public."
I've always been a very conservative investor, because I understand the meaning of risk, and I'm not willing to accept significant ones. I understand that I am effectively "giving up" on the possibility of striking it rich. And I've still lost (on paper) a lot of money -- even money in bonds. So if I can suck it up like a responsible adult, I don't see why I should be padding the falls of others with loftier ambitions. Sorry guys -- you decided you wanted to win big, and this time you lost.