Magical pony thoughts

Submitted by Sven on Tue, 2008/09/23 - 8:09pm.

Since we're living in la-la land, where the Bush Administration will be trusted to carry out one of the most complex and most expensive government transactions in human history (isn't it ironic that before a proposal hits committee Mr. Clean Bill has already allowed the process to become unfathomably more complex by the minute via the ultimate lobbyist feeding frenzy?), I thought I'd throw in my two magical cents.

If the danger is that the credit market is about to finally throw a rod, let's dispense with the bailout and the middlemen. Let's make the Fed the nation's lender. We'll hire the tens of thousands of laid off Wall Street grunts and set them up in every post office in the land. No new regulations, just strong lending standards and with them a reasonable expectation of return on taxpayer investment.

Voila. I can do clean and simple.



Russ's picture
If they did end up

If they did end up nationalizing the banks, Jefferson would have his final revenge against Hamilton and Adams, so at least there's that.

~Russ

I think you have that in

I think you have that in reverse dont you? Hamilton wanted a national bank, Jefferson hated banks with a passion. Jefferson wanted an agrarian nation full of farmers who were not beholden to creditors.

Russ's picture
That was my point:

That was my point: nationalization at the hands of Paulson et al. would end up putting us exactly where Jefferson envisioned.

~Russ

The worlds newest 3rd world

The worlds newest 3rd world country- The United States yeeehaww!

Sven's picture
Ha! It's all just part of

Ha!

It's all just part of the circle of life, man.

Russ's picture
The circle

Sven, where do you find this stuff? I mean, damn.

~Russ

Sven's picture
That one came from a

That one came from a misanthropic anarcho syndicalist who calls himself IOZ.

MDB's picture
misanthropic anarcho

misanthropic anarcho syndicalist

I wonder if I could get that as my job description....

MDB's picture
We can't have that!

let's dispense with the bailout and the middlemen. Let's make the Fed the nation's lender.

But that would be government intervention in the free market, and we can't have that, because that's lib-burr-ull-izz-umm and that's bad. Rush told me so.

WhitesCreek's picture
So far, I haven't actually

So far, I haven't actually seen a single statement from anybody that says this thing will work. I see all sorts of statements about what will happen if they don't give Paulson 700 billion and absolute power. Paulson, btw, is the guy who caused a great deal of this mess while he was CEO of Goldman Sachs.

I want to see someone I trust more than I trust Paulson, which is a low bar for sure, tell us exactly how the two scenarios would play out.

We are co-signing the loan for these creeps if this goes through.

gonzone's picture
Note to Sven

Sven,

You are a f*cking genius man! (In my best Drill Sergeant to Gump voice)
If we're gonna do socialism, let's do it right.
And I'm all about socialism, just like Jesus.

"When the going gets weird, the weird turn pro."
Hunter S. Thompson

Sven's picture
An actual economist climbs

An actual economist climbs on board my magical pony plan:

I look at the situation as follows. Banks are bridges between savers and investors. Some of these bridges have collapsed. But altogether too much attention is being placed on fixing the collapsed bridges. Instead we should be thinking about how to route more savings across the bridges that have not collapsed. Government lending may be one way of doing this but why lend to prop up the broken bridges? Instead, why not lend directly to the investors who are in need of funds?

R. Neal's picture
TV pundit: "The financial

TV pundit: "The financial capital of the world is no longer New York. It's the Republic of Washington D.C."

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