Punishing Good Behavior – September 2008
It has been a historic week in the financial markets; though, we’re not convinced the government’s actions have “fixed” the financial crisis gripping the world. These fixes don’t seem to address the real problems: securitizations that got carried away, over-reliance on ratings and regulators who feel asleep. While failure is apparently not an options for the big banks and institutions that over-levered, the recent moves by the government seem to be punishing the individuals who paid their bills and lived within their means. Yet among all this panic, we still see opportunity.
