Earlier today I was interviewed by Fox Business Television Network regarding the impending failure of the investment banking firm, Lehman Bros.

Like anyone else I will be saddened to see a century old, once venerable business pass from a place of prominence on Wall Street to a mere foot note in history.  I will also be saddened to see 25,000 people lose their job.  But my greatest saddness will be realized when the Federal Government steps in to “backstop” the sale transaction.

The Federal Government has replaced our primary economic structure of Capitalism with  Socialism.  In a truly capitalistic environment, “market forces” - a willing buyer and a willing seller would dictate the price, terms and conditions of any such sale.   The Government is not content to let market forces work, so instead they will have the taxpayers pick up the tab for Corporate malfeasance misfeasance and non-feasance by “covering the losses” that may or may not be sustained by a prospective buyer of Lehman Bros.,

Last year, Dick Fuld, the CEO of Lehman received a $40 million compensation package for making decisions regarding Lehman.  This year, the taxpayers of America will pay billions of dollars for those same decisions made by Mr. Fuld.  

Lehman Bros., is a publicly held company owned by thousands and thousands of stock-holders, each of which assumed the risk of loss in exchange for the reward of profit.   They hired Mr. Fuld to run their investiment and he did.  These stock-holders are the only individuals who should have to bear the loss of his decision making, yet the Federal Government is quick to pass it along to taxpayers who never had an opportunity of any upside reward.

The Federal Goverment came in and bailed out Bear Stearns and most recently Freddie Mac and Fannie Mae - now they are eager again to replace Capitalism withSocialism.