Friday, September 19, 2008

A Matter of Principle

The cowboy comic Will Rogers would quip about investing that "I'm not so much concerned about the return on my principle, as the return of my principle." (he probably said money) It seems that many of the professional banking and financial management experts have forgotten Rogers' point.
It certainly isn't clear why the taxpayer has any great interest in bailing these folks out. On the whole it appears that they have been pretty irresponsible and bailing them out is exactly the wrong signal to send.
They have forgotten the fundamental principles of good financial management and have watched their principle shrink precipitously in the process. Perhaps a few heads should roll, and I suspect some of those heads are in congress.

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