A VC on the Bailout

Earlier I quoted Fred Wilson. Wilson is A VC I respect and admire. He’s taken to calling the proposed bailout “The Splurge” (a locution I may adopt myself).

Today he humbly weighs in on To Splurge Or Not To Splurge.

Short version:

If this money is not coming back, then it’s an expenditure and we should not do it.

If the probability adjusted return on this investment is $1.5bn then we should do it in a nanosecond…

I’d send Paulson and Bernake to their cubicle and tell them to do the numbers and come back with the return projections before voting on this.

3 Comments

  1. Of course, one of the many causes of the melt down is that the Ivy leagued educated economic majors, B-School graduates working at investment banks and venture capitalist where very wrong.

    Why should be trust them to get it right this time?

  2. OK. So why aren't we taking those same economists from Yale, Harvard, and the Ivy League schools who not only got better than “B”s but are esteemed experts and professors of economics, being invited en masse to these Congressional meetings on this History-altering economic package??????

    They wrote letters to some Senators but c'mon. I say give them all first class plane fare and get their butts to DC like yesterday.

    I for one am getting more than a little nervous knowing that the fate of our nation rests in the hands of people who stand in front of cameras saying “We don't understand this. Wallstreet doesn't understand this. No one really understands this”

    *shudder*

    And these are the people meeting behind closed doors to determine our financial (and literal) future as a nation??

    Someone definitely not only understands this, but knows exactly how to fix it too. They have PhDs in economics and have lived, breathed and dookied nothing but economics their entire professional lives. My personal hunch is the reason they're not being invited is that Congress really doesn't want expert witnesses to the deals being cut that won't do the right thing: Build our country back from the lowly worker up. “Trickle-Up Economics”.

    Too many pockets are lining up for a gravy ladel and leading economists know, as did King Louis XVI's economists, that the paunch aristocrats will have to drab down their lives in order to insure that their very revenue wellspring, the common man, doesn't dry up.

    Well, you know the rest. King Louis fired his finance minister on the advice of his little brother, special sessions were held to placate the masses and lead them to think something was being done for them; meanwhile closed-door sessions were held that benefitted the rich classes instead. And then when those resolutions passed at the hurt of the masses…well…

    Heads did roll…

    I say that kind of tragedy is avoidable. I say invite the experts to stand in front of the nation and describe why Trickle-Up economics is the only sound solution to keep everyone's head cool and attached above the shoulders..

  3. Just want to say I love calling this “the Splurge”.

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