Above is a video I posted of a live and heated debate on Al Jazeera TV on Friday about the controversial issue of bankers bonuses.
As a trader I sympathise with my colleague Peter Schiff that we should not have bailed out the banks and let them fail. He does have a good point that market forces should have been allowed to take hold instead of interference by the government.
However, I disagreed with Peter based on the fact that had we not bailed them out, the economy would have been pushed into a deeper depression than we may have anticipated. That may be OK for millionaires like George Soros and Warren Buffett, but not so easy for the hard working man or woman in the street who is already struggling to make ends meet.
This may sound contradictory considering earlier I had said I was “dreaming of a recession”.
But I think you’ll agree that there is a massive difference between a recession where the economy “contracts” and a full fledged depression which flushes the entire economy into a black hole! The first is a necessary cycle of any economy, the second is the stuff of nightmares.
But maybe you have a different opinion. Let me know what YOU think and leave me a comment below.