tag:blogger.com,1999:blog-1194375569044391746.post4378058002233527873..comments2024-03-28T05:30:09.322-04:00Comments on Corporate Justice Blog: Subprime Bailouts and the Predator StateSteven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1194375569044391746.post-23744488503813515512009-10-22T23:28:40.259-04:002009-10-22T23:28:40.259-04:00An excellent paper. I approach this topic from a ...An excellent paper. I approach this topic from a government ethics perspective in another paper and condlude that bailouts of particular companies and government ethics do not and probably cannot mix.<br /><br />See Bailouts: An Essay on Conflicts of Interest and Ethics When Government Pays the Tab<br /><br />http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1470910<br /><br />Richard W. PainterAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-64051193490872055202009-09-22T02:02:05.369-04:002009-09-22T02:02:05.369-04:00The officials who developed and implemented the re...The officials who developed and implemented the recent financial bailouts in the United States forgot or refused to remember a critical tenet of capitalism, and that is, that the entrepreneur, not the taxpayer, bears the risk of business failure. If an entrepreneur behaves recklessly (e.g., takes unnecessary or uninformed risks with his or her capital resources and chooses investments that are highly risky; or produces products which consumers do not want; or provides his or her customers with extremely poor and unreliable service; failure is the most likely outcome. When (and if) the government uses taxpayer money to reward such reckless and unproductive behavior in the marketplace, an important function of investor/entrepreneur failure--notice--is defeated. Where the government provides an enabling institutional environment for capitalism to operate effectively, failure, on the part of investors/entrepreneurs who behave recklessly and unproductively (including unlucky ones), provides notice to subsequent actors in the marketplace not to behave likewise. However, if the government uses public funds to reward the type of reckless and opportunistic behaviors that have been exhibited by many executives in the financial sector, it creates perverse incentives in the marketplace and seriously undermines the very foundations of the nation's capitalist economy.<br /><br />- John Mukum MbakuAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-20316054270804375782009-09-21T13:13:00.676-04:002009-09-21T13:13:00.676-04:00i enjoyed the cartoon dude!i enjoyed the cartoon dude!Anonymousnoreply@blogger.com