Sunday, September 14, 2008
Potential Props to the Government
I should have added that if indeed Lehman declares bankruptcy, and the government doesn't do anything to prevent it, I will be impressed. So far, during the current crisis, the government has done little, or maybe they have done too much, to give me much faith in it. I really don't buy the argument that the government needs to step in to preserve the orderly functioning of the markets. The markets will take care of themselves. I have no problem being wiped out in any of my investments. In fact, I have lost as much as 85% on an investment in the past. You accept risk when you invest in the market. If you can't afford to go to 0, you probably shouldn't be investing or you are too invested in one stock.
Posted by T at 12:39 PM
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Don't hold your breath. The government has not stepped in yet, but that doesn't mean it won't ever. The government is still busy sorting out Indy Mac and reevaluating/ investigating more reported securities-related misdoings. It probably realizes now the kind of effort needed so it's sitting out on Lehman for now.ReplyDelete