Monday, September 15, 2008

No Bailouts. No Rescues.

One good thing about the Lehman bankruptcy is the fact that the government did not stop it.

Free markets can work if you let them. But, as in the case of Fannie Mae and Freddie Mac, the US government has shown that it is more than willing to let the taxpayer take the bullet for private businesses in the face of a free market firing squad.

Well, I hope the Lehman decision is a sign of things to come. A lot of big names are on the chopping block, AIG and Wamu being the top two that come to mind.

And while they scurry about trying to get financing to cover their shortfalls, I hope that the government remains content to sit quietly on the sideline and let's nature take its course.