Lux Lucet

It’s because of  interviews like this that investor Jim Rogers is a capitalist hero.  To the stunned disbelief others on the panel and against all consensus opinion, he makes the case that the US government acted properly last September in allowing Lehman Brothers to go bankrupt.  Furthermore, he argues, the Feds should have allowed market forces to take down all of Wall Street’s incompetent financial  institutions. 

Another featured guest, Julian Pendock, lamely argues that, while some banks needed to fail, we just couldn’t have allowed them to fail all at once.  How many banks should have failed, he doesn’t say.  Over how long a period these bankruptcies should have been allowed to occur, he doesn’t say.  What he does say is that what’s needed is more bank regulation. 

Rubbish. 

Capitalism is the economic system of the Bible.  And capitalism says that when somebody mismanages his assets, you let him fail,

Then he who had received the one talent came and said, ‘Lord, I knew you to be a hard man, reaping where you have not sown, and gathering where you have not scattered seed.  And I was afraid, and went and his your talent in the ground.  Look, there you have what is yours.’  

and suffer the consequences of his actions,

But his lord answered and said to him, ‘You wicked and lazy servant, you knew that I reap where I have not sown, and gather where I have not scattered seed.  So you ought to have deposited my money with the bankers, and at my coming I would have received back my own with interest.  So take the talent from him,

 and give the assets those who act prudently,

and give it to him who has ten talents.  

This is God’s justice, both sure and swift,

For to everyone who has, more will be given, and he will have abundance; but from him who does not have, even what he has will be taken away.  And cast the unprofitable servant into the outer darkness. 

although it’s not appreciated by the guilty parties,

There will be weeping and gnashing of teeth.’  (Matt.25:24-30)