Today I was with one of the key executives of a national bank discussing his experience with the “bailout” process. He was generally disgusted that the congress was using this event to shred the leadership of the Banks in such a public manner. He said it felt like the McCarthy hearings in the 1950s.
His prediction is that with the free market system being halted in the financial worlds, and being exchanged for a nationalized banking system there will be a drain of talented banking leaders exiting the business for much more enriching professional experiences.
His opinion about the televised hearings in Congress this week with the leaders of top eight banks, that Congress was doing their best to put the blame on a single institution instead of looking within Congress as to a share of the blame because of no regulations in place to control and stop the lending mess that was created.
We also discussed how neither of us are in favor of any bailouts of any U.S. company. If capitalism is really the key to our country’s success, then let it work and sort out the companies that make bad decisions. The consequences of bad business decisions is you either make the appropriate corrections or you go out of business. His opinion is that General Motors and others will still go bust, even with the bailouts, and our country will now have $25+ billion of their debt.