tag:blogger.com,1999:blog-5806884.post3460002611392835201..comments2023-10-31T03:18:26.963-07:00Comments on Great Guys Weblog: The Fed - just get over it!Brethttp://www.blogger.com/profile/15063508651955739056noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5806884.post-73229472376853350082008-04-12T08:53:00.000-07:002008-04-12T08:53:00.000-07:00Tom:I'm all for allowing reckless types to fail - ...Tom:<BR/><BR/>I'm all for allowing reckless types to fail - it's a vital part of creative destruction and progress. I think that the Fed was worried about systemic risk from a cascade. It will be interesting to see what the future holds: a bigger credit meltdown, a big inflation or something benign. One can only observe, not predict. Being an insightful observer is often enough to put one ahead of the game.Howardhttps://www.blogger.com/profile/14980738175201874292noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-86523525234854090952008-04-09T11:47:00.000-07:002008-04-09T11:47:00.000-07:00Well said Tom. Unfortunately this is an election ...Well said Tom. Unfortunately this is an election year, so unless we're really lucky, there will be some meddling.erphttps://www.blogger.com/profile/09826044412670324694noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-73502383347882225062008-04-09T09:47:00.000-07:002008-04-09T09:47:00.000-07:00The Fed was created to regulate banks tied to the ...The Fed was created to regulate banks tied to the Fed via specific policies which were the result of a trade-off between risk and return for the banks. <BR/><BR/>Bear Stearns was outside the Fed regulated banking system (an investment bank) so that it could reap higher returns by riskier policies. The 'right' thing to do would be let it fail--the ultimate reward for foolishly risky behavior. <BR/><BR/>The domino effect (failure causing failure) would have hurt any bank--regulated or not--that had not done due diligence on its contracts. <BR/><BR/>There really should be a consequence for buying a pig-in-a-poke. <BR/><BR/>We all would have suffered somewhat, but that is the price we pay for our own lack of diligence.<BR/><BR/>We only learn to not play with fire by being burnt.Anonymoushttps://www.blogger.com/profile/16284970763526471909noreply@blogger.com