No Intervention Needed?

" This is about -- forget Virginia New Jersey a political bomb cells robbing -- Detroit that's right Detroit thwarted a posting a billion dollar quarterly profit. 31 billion bucks in sales we're not taking a dime of taxpayer cast. And CIT group got a good deal with a billionaire bottled isn't that a lawsuit and the lenders saying it'll pull out a bankruptcy by the end of the year. Now over stock dot com CEO Patrick Byrne says the free markets will work things out -- DC simply stays out. That would -- right now. So you like these developments better than the government intervening --"

" Are absolutely. Your friend and mine Milton Friedman used to say that the great which socialism wasn't going to be brought in by about two. Lefty socialism is going to be brought in by corporations looking for bail -- that's what -- that's what gets the government going on the wrong track. And that's what we've been seeing what could we have done this last year that is any blanket had been looking desperately. Hunting around for cash as CIT. And we said now that have been held at. Politically it would have been the right thing to do. You know on the early ninety's the saint -- situation in Sweden and Japan basically the same thing happened is what happened that's last year. Sweden did the hard thing they tighten their belt they took a couple big banks. Crunched them up. You know that. Creative destruction and let them get destroyed in new things emerge and it worked well for them and -- Japan. They've been they've been having zombie banks and is on the economy for seventeen years. It's what we should have done is I think skilled at the FDIC last year and let the big banks the wonder and not create the zombie banks in this insisting that those. Pastor helped produce an okay Ford comes to mind. And it it was outselling even in gastric anchor should also. I'm just wondering if there's a lesson here that that -- across these guys -- that at the free enterprise system works this is how it's supposed to work with CI. Therefore didn't take a hit a bailout and -- They got their house in order and there are prospering and the guys who have gone on the the government dole. They're gonna limp along with long and never gonna take the majority -- cases where continental god help a number of times and uses a thriving airlines today. It would never got that chance is if it didn't get the chance but you always have to say. In economics. And then why it. When the government bails out an airline -- car company. You know -- serve at. You often by wiping out the bondholders or something or saying they don't have to pay for them that cost the capital markets and airline. They let that airline company. Now has a cheaper way to do business and all of its competitors and can drop its prices and so with a lot just kind of spreads through the system. And by the government propping up companies. Car companies instead of letting them go through the bankruptcy process. And like their balance sheet clean. They ultimately create these zombie corporations that will always need over the lousy economy helps you very quickly bottom line is you saw a lot of his stuff that was. Extra strength and we sell cars and homes now we saw him you almost would regret the economist and well I'm here bad assets not as a CR's. Pat Brown always good seeing my friend Patrick -- overstuffed Broadcom the company. He created for -- not all right meanwhile."