Bulls Don’t Get Bailed Out
I’ve been following the wall street freak out since it began, and I’m not totally sure I minded the $700 billion dollar rescue plan devised by Paulson, but it got me to wondering…
Wondering why, if there was an upside to holding the illiquid assets for the feds and the tax payer, why larger private money wasn’t being pooled to do exactly the same thing.
Imagine Mark Cuban, George Soros, Rupert Murdock, Warren Buffet, Bill Gates, and other private financial giants create a new holding company exclusively for these illiquid assets.
The fed could line up the financial scenario in a favorable way for the group of private investors as the carrot. Paulson could head the venture, assemble the board, and resell the assets on the market as a value is established.
I’m just thinking that the speed in which private money can act without the federal red tape would allow the markets to correct themselves, remove the need for further government intervention, and the free market prevails.
