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Bail Bondsman

Reasons against bailouts

  • Signals lower business standards for giant companies by incentivizing risk
  • Creates moral hazard through the assurance of safety nets
  • Promotes centralized bureaucracy by allowing government powers to choose the terms of the bailout
  • Instills a corporatist style of government in which businesses use the state's power to forcibly extract money from taxpayers.

Paul Volcker, chairman of Barack Obama's White House Economic Recovery Advisory Board, said that bailouts create moral hazard: they signal to the firms that they can take reckless risks, and if the risks are realized, taxpayers pay the losses, also in the future. "The danger is the spread of moral hazard could make the next crisis much bigger".

On November 24, 2008, American Republican Congressman Ron Paul (R-TX) wrote, "In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones. By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use. An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned. But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones. How this is supposed to be good for our economy is beyond me.... It won’t work. It can’t work... It is obvious to most Americans that we need to reject corporate cronyism, and allow the natural regulations and incentives of the free market to pick the winners and losers in our economy, not the whims of bureaucrats and politicians."

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More information...
Reasons against bailouts
In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones...
Themes from bailouts
From the many bailouts over the course of the 20th century, certain principles and lessons have emerged that are consistent....
Bailout
In economics, a bailout is an act of loaning or giving capital to an entity (a company, a country, or an individual) that is in danger of failing,...
Forms of bail used
In the United States there are several forms of bail used, these vary from jurisdiction, but the common forms of bail include...
Bail law in United States
In pre-independence America, bail law was based on English law. Some of the colonies simply guaranteed their subjects the protections of that law....
By a court
Under current law, a defendant has an absolute right to bail if the custody time limits have expired and otherwise ordinarily a right to bail unless there is sufficient reason not to grant it....
By police after charge
After a person has been charged, he must ordinarily be released, on bail or without bail....
Bail
Traditionally, bail is some form of property deposited or pledged to a court to persuade it to release a suspect from jail,...
History & Modern practice
The first modern bail bonds business in the United States, the system by which a person pays a percentage of the court specified bail.. ...
Bail bondsman
A bail bond agent, or bondsman, is any person or corporation which will act as a surety and pledge money or property as bail for the appearance of a criminal defendant in court....

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