Protecting the Moral Hazard- No Gain, Feel the Pain

Morale Hazard. Its another way of saying that Failure should have Pain attached to it. Wall Street is not stupid. While spreadsheets define financial risk, contracts define the personal pain of failure. When the financial rewards disappear or go negative, thats when the contracts get terminated or let expire. At which point any Pain associated…

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The Botox Bailout Q&A

No question the bailout is necessary. We need the liquidity. But just like Botox, the impact of the Bailout will wear off very quickly. Its lipstick on bank balance sheets. The biggest mistake any taxpayer, shareholder or employee can make is to the think the Bailout solves the crisis. It doesn’t. So Post Bailout what…

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My Presidential Endorsement – P2

This is what I wrote in my Presidential Endorsement Post: In the meantime, because the economic future of this country depends on the funding of the plan Secretary Paulsen has proposed, I will set aside my campaigning and work with my colleagues in the Senate and across my party to quickly get this bill passed….

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My Presidential Endorsement..

Dear Sen. McCain, I admire your desire to cut taxes, and to eliminate the pork barrel spending that costs all Americans our hard earned money.I like your Maverick spirit. However, after the events on Wall Street this past week, my hope is that you will completely retract your economic strategy and do the prudent thing,…

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