Tuesday, May 12, 2009

Hussman Weekly: Banks Pass Stress Test - Regulators Fail Ethics Test

Hussman starts by quoting Stevie Wonder:

We're all amazed but not amused
by all the things you say that you'll do
Though much concerned but not involved
with decisions that are made by you
But we are sick and tired of hearing your song
Telling us how you are gonna change right from wrong
'Cause if you really want to hear our views
You haven't done nothin'

Then goes on to give us a great understanding of why these bailouts are bad for the economy and why moral hazard destroys instead of saving capital. This is a must read.

Scott Dauenhauer CFP, MSFP, AIF