But on the other hand …..

My observation has been is if you want to see what not to do, ask an economist what he would do…

But on the other hand …..

My observation has been is if you want to see what not to do, ask an economist what he would do…

Simon Johnson’s thesis that our government has been captured by the financial services industry is only partially true. For all our complaints, we do live in a mature democracy, with a dispersed government. It’s hard for any one minority interest to hijack the entire government apparatus.

The many, many trillions that our government is putting on the line to maintain high house prices is not just to make some bankers richer, or to put another million in the pockets of a few more Congressmens’ relatives and friends. It’s done to make homeowners happy. They are over 3/4 of all voters. Add all the professionals whose livelihood depends on free money, and you have an unbeatable force that can and does control our government.

Take away the professionals, and the voter block is still powerful, but much weaker. Take away the voters, and you can divert a few hundred billion at most, not 10 trillion (in direct subsidies and indirect guarantees).

Simon Johnson’s thesis that our government has been captured by the financial services industry is only partially true. For all our complaints, we do live in a mature democracy, with a dispersed government. It’s hard for any one minority interest to hijack the entire government apparatus.

The many, many trillions that our government is putting on the line to maintain high house prices is not just to make some bankers richer, or to put another million in the pockets of a few more Congressmens’ relatives and friends. It’s done to make homeowners happy. They are over 3/4 of all voters. Add all the professionals whose livelihood depends on free money, and you have an unbeatable force that can and does control our government.

Take away the professionals, and the voter block is still powerful, but much weaker. Take away the voters, and you can divert a few hundred billion at most, not 10 trillion (in direct subsidies and indirect guarantees).

Simon Johnson’s thesis that our government has been captured by the financial services industry is only partially true. For all our complaints, we do live in a mature democracy, with a dispersed government. It’s hard for any one minority interest to hijack the entire government apparatus.

The many, many trillions that our government is putting on the line to maintain high house prices is not just to make some bankers richer, or to put another million in the pockets of a few more Congressmens’ relatives and friends. It’s done to make homeowners happy. They are over 3/4 of all voters. Add all the professionals whose livelihood depends on free money, and you have an unbeatable force that can and does control our government.

Take away the professionals, and the voter block is still powerful, but much weaker. Take away the voters, and you can divert a few hundred billion at most, not 10 trillion (in direct subsidies and indirect guarantees).

That’s bullcrap patient, these bailouts have nothing to do with making people (i.e.voters) happy. 3/4 of Americans are not homeowners, not sure where you got that stat. The majority of American’s are against bailing out homeowners. Nearly 40% of Americans are renters, do you think the bailout is making them happy? What about homeowners who either own their homes outright or nearly outright? Are they happy?

Don’t kid yourself, Its all about saving the banks and financial industry. The U.S. economy has no real foundation outside of loaning money to each other to buy crap. If/when the financial industry implodes, the U.S. is done.

That’s bullcrap patient, these bailouts have nothing to do with making people (i.e.voters) happy. 3/4 of Americans are not homeowners, not sure where you got that stat. The majority of American’s are against bailing out homeowners. Nearly 40% of Americans are renters, do you think the bailout is making them happy? What about homeowners who either own their homes outright or nearly outright? Are they happy?

Don’t kid yourself, Its all about saving the banks and financial industry. The U.S. economy has no real foundation outside of loaning money to each other to buy crap. If/when the financial industry implodes, the U.S. is done.