A different view of the bailout

Barry Ritholtz sums up his view of the bank bailouts.

“Look, let me bottom line this for you. These accounts made extremely risky investments, at a time when no one else was willing to put up this kind of money. You put an enormous amount of capital up for very little returns. Your brokers failed to negotiate half decent deals – its as if they were working for the banks, not you. You should have been paid handsomely for this, and you are not even break even across most of this junk you bought. Had you simply put your money into an index fund or bought bonds, you would have significantly outperformed all this stuff – with appreciably less risk.”

Read the entire article which explains his reasoning.