Comments on: CIT Goes Over a Cliff http://www.investmentu.com/IUEL/2009/July/cit-bankruptcy.html Investment Advice and Investment Research with a Contrarian Point of View Mon, 15 Mar 2010 15:30:19 -0500 http://wordpress.org/?v=2.8.3 hourly 1 By: CIT Goes Over a Cliff | Article Clump http://www.investmentu.com/IUEL/2009/July/cit-bankruptcy.html#comment-15563 CIT Goes Over a Cliff | Article Clump Thu, 16 Jul 2009 18:33:19 +0000 http://www.investmentu.com/IUEL/2009/July/cit-bankruptcy.html#comment-15563 [...] CIT Goes Over a Cliff [...] [...] CIT Goes Over a Cliff [...]

]]> By: Brent http://www.investmentu.com/IUEL/2009/July/cit-bankruptcy.html#comment-15559 Brent Thu, 16 Jul 2009 17:58:53 +0000 http://www.investmentu.com/IUEL/2009/July/cit-bankruptcy.html#comment-15559 From the article: "That’s pretty clear language that “firms not vital to the inner workings of the financial system” would not be saved like many larger banks have been. It’s harsh and it’s ugly, and it’s called capitalism." Incorrect. Capitalism would be the government not bailing out any bank, large or small. What we have today is some sort of selective capitalism where the banks with the right political connections or are arbitrarily designated as "too big to fail" are bailed out by the government and the others are left to their own devices. For free-market capitalism to work, the same set of rules need to apply to everyone. From the article:
“That’s pretty clear language that “firms not vital to the inner workings of the financial system” would not be saved like many larger banks have been. It’s harsh and it’s ugly, and it’s called capitalism.”

Incorrect. Capitalism would be the government not bailing out any bank, large or small. What we have today is some sort of selective capitalism where the banks with the right political connections or are arbitrarily designated as “too big to fail” are bailed out by the government and the others are left to their own devices.

For free-market capitalism to work, the same set of rules need to apply to everyone.

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