So the Feds let Lehman Bros fail, but they’re willing to bail out AIG? That must be frustrating for people at Lehman Bros! It is true that punishment was long overdo for Wall Street powermongerers, but we are all suffering for their sins.
This train of thought is new to me. Whenever the market started to go south (earlier this year), I was glad that the free market was punishing people who played fast and loose with other people’s money. With house prices down and banks starting to falter, the dream of home ownership seemed within reach for me. The bad guys got hurt, and I could get onto the property ladder.
A sage accountant friend pointed out that we are all tied together, whether we like it or not. With the economy faltering everything is in flux; jobs are scarce, houses aren’t worth what you paid for them months ago, and any money you have invested is hurting. My dream exists in a strong economy, not in a financial crisis. As with Enron, these criminals, who cost hard working people millions of dollars, will go (relatively) unpunished. They cannot repay the money because the money is gone; in the down economy they cannot make the money back either. We are defenseless against the devestation.
I am curious to see how the world can recover from such unexpected situations. For now, I withhold judgement and hope that the big brains in economics know what they’re doing.