No Intervention Needed?

" This is -- Fox -- forget Virginia New Jersey a political bomb cells -- Detroit that's right -- thwarted a posting a billion dollar quarterly profit. 31 billion bucks and sales we're not taking a dime of taxpayer cast. And CIT group got a good deal with a billionaire bottled isn't -- 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. -- you like these developments better than the government intervening."

" Are absolutely. Your friend and -- Milton Friedman used to say that the great which socialism wasn't going to be brought in by about to -- lefties socialism is going to be brought in by corporations looking for bailout 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 -- is any bank could have been looking desperately. Hunting around for cash as a C -- And we said now that have been held. Politically it would have been the right thing to do. You know on the early ninety's the -- the -- situation in Sweden and Japan -- 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 and 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 to wonder and not create the zombie banks is insisting that those. Passed -- help for -- okay Ford comes to mind. On 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 leave it at the free enterprise system works this is how it's supposed to work with CIT. You know Ford didn't take a hit a bail out -- hand out. 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 that but there -- cases where continental god help a number of times and dozens of thriving -- today. It would've never got that chance if if it didn't get the chance but you always have to say. In economics. And then what. When the government bails out an airline -- car company. You know -- You often by wiping out the bondholders or something or saying they don't have to pay for the that cost the capital and -- it's an airline. They let that airline company. Now has a cheaper way to do business -- all of its competitors and they 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 -- their balance sheet clean. They ultimately create -- zombie corporations that will always need over the lousy economy helps you very quickly bottom line is you sell a lot of this stuff that was. Extra strength and we sell cars and homes now we saw you almost would regret the economy. Well I'm here bad assets not as a CR's. Pat Brown always good seeing my friend Patrick -- the company. He created from not all right meanwhile."