The recent spate of government bailouts (airline, steel, etc.) reminds me of the S&L scandal in the 80's. I believe Japan had a similar problem as well. Instead of letting some 'creative destruction' take place, as our govt. did, the Japanese bailed the incompetent banks out.
Result: their economy has been stagnant for a decade.
Let's hope the govt. has learned from their mistakes.
Yeah, right. While I don't think we should be bailing anyone out, one has to wonder what will happen to all the money invested in those companies, if they're allowed to go under. Your average stockholder (401Ks anyone?) will keep losing money, while only the people in know (i.e. insider trading, and your Wall Street types) will sell before a bankrupcy happens. I'm beginning to think this whole "stock market" is a bad idea...
That's odd....I don't remember our economy tanking right after the S&L bailout. I'm not saying it was necessarily a positive thing for us or the japanese to do it...just that saying it was the "cause" of the current Japanese economic troubles would be the epitome of ignorance.
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
Bailout (Score:5, Interesting)
Result: their economy has been stagnant for a decade.
Let's hope the govt. has learned from their mistakes.
Re:Bailout (Score:1)
I'm beginning to think this whole "stock market" is a bad idea...
Re:Bailout (Score:2)