Hedge fund fallout & Other Merry Weather

Michael Perelman michael at ecst.csuchico.edu
Thu Oct 1 12:16:43 PDT 1998


Also keep in mind that the current merger mania increases the population of the too big to fail, unless we confine mergers to the already too big to fail.

Doug Henwood wrote:


> James Farmelant wrote:
>
> >A short while ago I was watching some of Al Greenspan's testimony
> >before the House Banking Committee concerning hedge funds.
> >Greenspan was arguing that hedge funds should be regulated by
> >the free market rather than by the government but as Barney Frank
> >pointed out this argument was inconsistent with his defense of
> >the government's facilitation of the bailout of LCTM. Apparently,
> >for this one-time disciple of Ayn Rand government intervention
> >is fine when it benefits wealthy investors.
>
> Oh, but there was systemic risk! If you're really rich & you fuck up, you
> can take out enough innocent bystanders that the government just *has* to
> step in, you see. With the less fortunate recipients of public welfare, the
> morally debilitating effects of dependency are foregrounded.
>
> Doug

--

Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901



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