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  • Don't Do Business with Sharks

    Bloomberg reports today:

    The Federal Reserve’s $1 trillion effort to restart the market for securities backed by loans is encountering resistance from investors, undermining Chairman Ben S. Bernanke’s attempt to further drive down borrowing costs.

    Investors are concerned that Congress, while responding to taxpayer anger over bank bailouts, hasn’t described how the most sweeping regulatory overhaul since the Great Depression will change the ways financial companies turn a profit. The government needs Wall Street to help revive credit yet can’t ignore the outcry over aid to firms that took excessive risks.

    “I can do very well for my clients without venturing into federal waters which are inhabited by sharks,” said David Kotok, the chairman of Cumberland Advisors Inc. in Vineland, New Jersey, who manages about $1 billion. “We are leery of doing anything with the federal government.”

    Posted in Economics [slideshow_deploy]

    7 Responses to Don't Do Business with Sharks

    1. Dave, Longmont, CO says:

      Makes perfect sense to me. I would stay as far away from any government involvement as possible.

      Doing business is not enough for them, until they can tell you how to run your business, who to hire, what to pay them, and so on, the government will not be happy.

    2. jim dallas says:

      Does anyone get the feeling that this president does not like the United States. Was he not in France today apologizing for our "arrogance" when he could have been visiting the grave sights of the Americans who gave their life so France could be "free" and have a Pres of U.S. even visit as an "ally". Has he studied anything that has to do with our Heritage and why we can and should walk tall and proud do to the strength and courage of people like my father who flew a "black widow" in WW II. This 'man' is an embarrasment to our nation and Pelosi visiting the Pope to see if he has changed his mind about killing babies whom God knew before they were born. I must apologize to my only child , my 18 year old daughter that our leaders, including congress are destroying America with passage of Bills with no discussion and without even reading. Everyone of them should resign and this lame president so the American people can put some real men and women in there to clean up this messs before it is OVER!

    3. Rusty, CO says:

      If you think the UNREAD bill wasn't written 6 or 8 months before the elections you are wrong.

    4. MAS1916 - Denver, CO says:

      In the long term, this is healthy.

      Business should indeed be very wary of the US Government. Business leaders should avoid engaging themselves with political leaders – particularly leftist ones. Senator Dodd provides a perfect illustration. After going to bat for AIG by inserting bonus language into the Stimulus package (according to Dodd, this was at the request of Obama's Treasury Dept.), Dodd quickly turned on AIG to help lead the chorus of outrage. He turned up the heat on AIG execs by shaming them into returning their bonus dollars. It turns out that many of these execs contributed substantially to his campaign.

      This actually serves all parties in this mess properly. Dodd deserves to lose his Senate seat for leading the league in hypocrisy in scolding AIG after he himself provided the bonuses. The AIG execs deserve to lose their bonuses for contributing campaign cash to Dodd.

      All financial organizations need to take note. Do business with the government at your peril. It is better to take your chances in the free market and spend your time and money doing better business – not playing in the political arena.


    5. Janice - Alvarado Te says:

      The most disturbing actions our President is taking is acting like the "Savior" or the world and not the leader of the most powerful nation in the world. His appearance on the various "non-traditional" media shows such as "Jay Leno" has cheapened his position to make it one of a showman rather than a diplomat. He has spend numerous hours posing for various portraits that are plastered on all our magazines and news papers as if he were a Hollywood movie star. He is not a figure head with no responsibility, but how can he possibly be spending the time needed to fix the mess we are in when his calendar is filled with public appearances and photo shoots.

      Have you ever wondered why they love him so much in Europe? They are celebrating the transformation of our Representative Republic Government to a Socialist Government, just like them.

    6. Patrick Brandner, La says:

      If there were unclear reasons for TERM LIMITS, the recent actions and statements by our elected leaders has cleared any doubts. Push for term limits.

    7. ra,ohio says:

      I fear this insidious administration and congress is systematically taking down this great country of ours.

      The sad part is we can only stand and watch,…until 2010.

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