From here, Hempton is arguing the Bair forced the confiscation of a solvent bank:
Consequently he is arguing that much of the present crisis (not the ongoing Greenspan bad monetary policy that led to this crisis) is to due to bad governance by the government destroying the property rights aspect of capitalism.
I dont know enough to ascertain if this is absolutely true; but it appears we have a government messing with the fundamental basis of capitalism such that property rights are confiscated and solvent/functioning business are forced into partnerships for political and executive administrative reasons. This isnt liberal democracy and I am pretty sure the West fought an expensive and prolonged cold war against this kind of government ideology. There is so much that is wrong with this whole episode.
Hempton has been critical of the Bush Administration for its arbitrary confiscation of property as part of this crisis that has in his opinion broken the trust basis of capitalism. From here:1). Sheila Bair rings Jamie Dimon [President of JP Morgan Chase] and suggests to him that she might confiscate the assets of Washington Mutual. She says that Jamie should prepare a bid.
2). One week later the Office of Thrift Supervision signs a memorandum of understanding with WaMu saying that WaMu does not need to raise capital or increase liquidity.
3). Sheila Bair forces WaMu to get investment bankers in who will do due diligence.
4). The investment bankers talk down WaMu for weeks in press and cause a minor run.
Creditors now face confiscation of their rights by the US Government without oversight or audit or even process. ... The trust needed to make capitalism work has been removed.
Consequently he is arguing that much of the present crisis (not the ongoing Greenspan bad monetary policy that led to this crisis) is to due to bad governance by the government destroying the property rights aspect of capitalism.
I dont know enough to ascertain if this is absolutely true; but it appears we have a government messing with the fundamental basis of capitalism such that property rights are confiscated and solvent/functioning business are forced into partnerships for political and executive administrative reasons. This isnt liberal democracy and I am pretty sure the West fought an expensive and prolonged cold war against this kind of government ideology. There is so much that is wrong with this whole episode.
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