think big thoughts

Fed Loans to Big Banks Undisclosed to Congress:

“Right now. we have a system where the government is incredibly entangled in the financial system by having to provide this support. And if you believe in a free market system, as most here in the United States do, you want that to be provided by the private sector, not by the government. And the way to do that is to have shareholders bear the risk. And right now, shareholders bear some of the risk but much of it is born by the government.”

“If you have this backstop reliance on the government to bail you out in the event that you take risks that turn out to go sour, this induces you to take risks that you wouldn’t otherwise, it’s one of these heads I win, tails you loose.”

http://bloom.bg/w5fmmj (Bloomberg)