He said Dicks’ statement on Monday’s market reaction was “absolute nonsense spoken by a man who doesn’t know anything about the markets.”

“You can’t make policy based on financial market herd behavior. You must make it on fundamental economic principles,” Cloud said. That means not bailing out some of the giants, allowing smaller banking firms to

pick up the slack in the market and letting those who’ve traditionally won in the economy to lose.

“What Congress is attempting to do is reinflate a popped balloon,” he said. “Economic forces that are already operating are not going to be stopped by any bailout that the federal government can enforce.”

Steven Gardner

Monday, September 29, 2008 

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