Tuesday, May 12, 2009

Suckled on the Greenspan Put

No surprise, but the financial services industry has an inherent positive bias. And, it is no surprise that most participants in the financial markets are "free market" ideologues.

And so it strikes me as a little strange when the financial markets and its predominant denizens are clamoring for more monetary stimulus, more fiscal stimulus, more bailout.

The answer lies in the heart of human nature. If it takes compromising ones principles in order to bail one out of an underwater position, then they'll take it.

And when the sector has been suckled on the Greenspan Put, why would you expect it to change its spots.

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