Warren Buffet explained how to lose a few trillion, here and there. Well managed companies, like Warren Buffet’s, don’t get government guarantees. Badly managed companies with good political connections get government guarantees. So naturally all the capital floods to companies with a track record of losing it.This is capitalism in reverse. For capitalism to work, the people who are good at managing stuff have to wind up in charge of …
Tag: financial crisis
The lesson of Japan’s failure
Ten years ago, Japan had a banking crisis very like the one we just had. It was discovered that financiers and big businessmen had blown staggering sums of money, whereupon the government massively intervened to keep those that had screwed up from losing their jobs. The Japanese economy has been stagnant ever since, even though, or perhaps because, the government has poured huge amounts of “stimulus†over the economy, so …
How many CRA loans, how much affirmative action payout?
From 2000 to 2007, blacks and hispanics received six hundred and thirteen billion dollars more in home purchase mortgages than they would have received had they received the same proportion of the money that they received in 1999 – a figure that strikingly resembles the total cost of the bailout. In 1999, people warned that CRA loans, affirmative action loans, racial quota loans, began to endanger the financial system Fannie …