Chingo De Dinero

Sometimes when you commit a crime, you should sit in jail and reflect on what you have done, so in the future it will not happen again.  If you are simply let off you will not understand the extent of what you have done.

This is no different from the banking bailout now.  If the government takes responsibility for what others have done, those who made the mistakes will do it again.  Many times this is called moral hazard.  If I know someone will catch me if I fall, I will take risk which I normally would not take.  Although it is nice be caught when you fall, is comes at a cost, and inflicting that cost on those who are not willing is a violation of their rights.  There may be some trickle down, but it will not be as bad as if there is a bailout and risky actions are still taken, and we find ourselves in the same situation in the future.

I recently read a quote form a congressman that when he started Chrisler was going into bankruptcy, and the worry was that they could go bankrupt, and they needed to be saved.  Here we are again, and issue.  If they would have fallen the first time, there would have been room for a better company to step up, and we would have been better off.  Instead, they were bailed out and squeezed out new competition, only to mess it up again.

All the argument should be is does the calapse of the financial industry violate anyone’s rights.  The clear answer is no, but forcing people to pay for a bailout is clearly a violation of individual rights.  All of the arguments about the trickle down and the positive possibility of the assets being worth more than they are bought for are wrong, and just a short fix.  Kind of like when you get a wish from the geniue in the bottle, you make your wise, get it, but the unexpected side effects are worse than what you have gotten.

Don’t bail out the financial industry.  It may hurt for a little while, but we will make it through it and will be stronger after.