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June 22, 2008 at 2:56 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226686June 22, 2008 at 2:56 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226798
gandalf
ParticipantBailout on the banking and finance side is already happening and is taking two forms: 1) socializing the risk burden, which has been happening for some time now via implicit and explicit MBS guarantees and outright purchases of poorly performing loan pools (and even companies in the case of B-S); and 2) loose federal monetary policy supporting currency devaluation and moderately high inflation, which enables operators in the market to write down bad paper, upgrading balance sheets to sustainable levels.
None of this takes the form of outright subsidies, eg. welfare checks to poor people that right-wing douchebags rant about, socialist democrats, blah-blah, etc. But it is every bit welfare, a HUGE government subsidy, and it subsidizes corporations, banks and investors — sophisticated players who are in a position to benefit from the off-book and structural adjustments. The reason it’s happening is everybody on the inside is shit-scared the bubble’s going to ‘POP’. Subsidies and bailouts are ‘deflating’. Only alternative to ‘popping’ is ‘deflating’. So if you’re an establishment guy, you should be for bailouts.
June 22, 2008 at 2:56 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226809ParticipantBailout on the banking and finance side is already happening and is taking two forms: 1) socializing the risk burden, which has been happening for some time now via implicit and explicit MBS guarantees and outright purchases of poorly performing loan pools (and even companies in the case of B-S); and 2) loose federal monetary policy supporting currency devaluation and moderately high inflation, which enables operators in the market to write down bad paper, upgrading balance sheets to sustainable levels.
None of this takes the form of outright subsidies, eg. welfare checks to poor people that right-wing douchebags rant about, socialist democrats, blah-blah, etc. But it is every bit welfare, a HUGE government subsidy, and it subsidizes corporations, banks and investors — sophisticated players who are in a position to benefit from the off-book and structural adjustments. The reason it’s happening is everybody on the inside is shit-scared the bubble’s going to ‘POP’. Subsidies and bailouts are ‘deflating’. Only alternative to ‘popping’ is ‘deflating’. So if you’re an establishment guy, you should be for bailouts.
June 22, 2008 at 2:56 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226841ParticipantBailout on the banking and finance side is already happening and is taking two forms: 1) socializing the risk burden, which has been happening for some time now via implicit and explicit MBS guarantees and outright purchases of poorly performing loan pools (and even companies in the case of B-S); and 2) loose federal monetary policy supporting currency devaluation and moderately high inflation, which enables operators in the market to write down bad paper, upgrading balance sheets to sustainable levels.
None of this takes the form of outright subsidies, eg. welfare checks to poor people that right-wing douchebags rant about, socialist democrats, blah-blah, etc. But it is every bit welfare, a HUGE government subsidy, and it subsidizes corporations, banks and investors — sophisticated players who are in a position to benefit from the off-book and structural adjustments. The reason it’s happening is everybody on the inside is shit-scared the bubble’s going to ‘POP’. Subsidies and bailouts are ‘deflating’. Only alternative to ‘popping’ is ‘deflating’. So if you’re an establishment guy, you should be for bailouts.
June 22, 2008 at 2:56 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226857ParticipantBailout on the banking and finance side is already happening and is taking two forms: 1) socializing the risk burden, which has been happening for some time now via implicit and explicit MBS guarantees and outright purchases of poorly performing loan pools (and even companies in the case of B-S); and 2) loose federal monetary policy supporting currency devaluation and moderately high inflation, which enables operators in the market to write down bad paper, upgrading balance sheets to sustainable levels.
None of this takes the form of outright subsidies, eg. welfare checks to poor people that right-wing douchebags rant about, socialist democrats, blah-blah, etc. But it is every bit welfare, a HUGE government subsidy, and it subsidizes corporations, banks and investors — sophisticated players who are in a position to benefit from the off-book and structural adjustments. The reason it’s happening is everybody on the inside is shit-scared the bubble’s going to ‘POP’. Subsidies and bailouts are ‘deflating’. Only alternative to ‘popping’ is ‘deflating’. So if you’re an establishment guy, you should be for bailouts.
June 21, 2008 at 11:48 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226449ParticipantAecetia, I agree.
Complex systems often follow simple rules, and following the money reveals the fault lines. (Not as simple as Dem vs. Rep, partisan crap.)
How to fix? I don’t know.
I think it’s a combination of fiscal patches, government programs, inflation and collective economic pain.
Could it have been avoided? Absolutely. FBI crackdown is a good start.
June 21, 2008 at 11:48 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226563ParticipantAecetia, I agree.
Complex systems often follow simple rules, and following the money reveals the fault lines. (Not as simple as Dem vs. Rep, partisan crap.)
How to fix? I don’t know.
I think it’s a combination of fiscal patches, government programs, inflation and collective economic pain.
Could it have been avoided? Absolutely. FBI crackdown is a good start.
June 21, 2008 at 11:48 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226574ParticipantAecetia, I agree.
Complex systems often follow simple rules, and following the money reveals the fault lines. (Not as simple as Dem vs. Rep, partisan crap.)
How to fix? I don’t know.
I think it’s a combination of fiscal patches, government programs, inflation and collective economic pain.
Could it have been avoided? Absolutely. FBI crackdown is a good start.
June 21, 2008 at 11:48 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226605ParticipantAecetia, I agree.
Complex systems often follow simple rules, and following the money reveals the fault lines. (Not as simple as Dem vs. Rep, partisan crap.)
How to fix? I don’t know.
I think it’s a combination of fiscal patches, government programs, inflation and collective economic pain.
Could it have been avoided? Absolutely. FBI crackdown is a good start.
June 21, 2008 at 11:48 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226622ParticipantAecetia, I agree.
Complex systems often follow simple rules, and following the money reveals the fault lines. (Not as simple as Dem vs. Rep, partisan crap.)
How to fix? I don’t know.
I think it’s a combination of fiscal patches, government programs, inflation and collective economic pain.
Could it have been avoided? Absolutely. FBI crackdown is a good start.
June 21, 2008 at 11:39 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226444ParticipantEasy to cast this as socialist Dems vs. business Reps.
Not the case. Think it through.
‘Socialist’ dems supporting a bailout keeps Wall Street, BofA, et al. afloat. How ‘establishment’.
The mortage mess is HUGE. It has the potential to send us into something worse than the Great Depression if it’s not managed properly. Everyone’s in damage control. They’re reaching for answers. And there are NONE. No easy answers.
See my previous comments about inflation. Nobody calls it a bailout, but that’s exactly what it is, on the sly. Devalue the currency, write down the debt. Everyone ends up poorer except those who borrowed and levered to the MAX. How is that better than a bailout? Where is the discussion of the insidious effects of inflationary policy?
Note: I don’t support a bailout. I don’t support erasing the debt through inflation. I think Greenspan, mortgage brokers and flippers deserve to spend the rest of their lives eating dog food on the banks of the San Diego River for the mess they created (that we’re now collectively trying to deal with).
June 21, 2008 at 11:39 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226558ParticipantEasy to cast this as socialist Dems vs. business Reps.
Not the case. Think it through.
‘Socialist’ dems supporting a bailout keeps Wall Street, BofA, et al. afloat. How ‘establishment’.
The mortage mess is HUGE. It has the potential to send us into something worse than the Great Depression if it’s not managed properly. Everyone’s in damage control. They’re reaching for answers. And there are NONE. No easy answers.
See my previous comments about inflation. Nobody calls it a bailout, but that’s exactly what it is, on the sly. Devalue the currency, write down the debt. Everyone ends up poorer except those who borrowed and levered to the MAX. How is that better than a bailout? Where is the discussion of the insidious effects of inflationary policy?
Note: I don’t support a bailout. I don’t support erasing the debt through inflation. I think Greenspan, mortgage brokers and flippers deserve to spend the rest of their lives eating dog food on the banks of the San Diego River for the mess they created (that we’re now collectively trying to deal with).
June 21, 2008 at 11:39 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226571ParticipantEasy to cast this as socialist Dems vs. business Reps.
Not the case. Think it through.
‘Socialist’ dems supporting a bailout keeps Wall Street, BofA, et al. afloat. How ‘establishment’.
The mortage mess is HUGE. It has the potential to send us into something worse than the Great Depression if it’s not managed properly. Everyone’s in damage control. They’re reaching for answers. And there are NONE. No easy answers.
See my previous comments about inflation. Nobody calls it a bailout, but that’s exactly what it is, on the sly. Devalue the currency, write down the debt. Everyone ends up poorer except those who borrowed and levered to the MAX. How is that better than a bailout? Where is the discussion of the insidious effects of inflationary policy?
Note: I don’t support a bailout. I don’t support erasing the debt through inflation. I think Greenspan, mortgage brokers and flippers deserve to spend the rest of their lives eating dog food on the banks of the San Diego River for the mess they created (that we’re now collectively trying to deal with).
June 21, 2008 at 11:39 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226600ParticipantEasy to cast this as socialist Dems vs. business Reps.
Not the case. Think it through.
‘Socialist’ dems supporting a bailout keeps Wall Street, BofA, et al. afloat. How ‘establishment’.
The mortage mess is HUGE. It has the potential to send us into something worse than the Great Depression if it’s not managed properly. Everyone’s in damage control. They’re reaching for answers. And there are NONE. No easy answers.
See my previous comments about inflation. Nobody calls it a bailout, but that’s exactly what it is, on the sly. Devalue the currency, write down the debt. Everyone ends up poorer except those who borrowed and levered to the MAX. How is that better than a bailout? Where is the discussion of the insidious effects of inflationary policy?
Note: I don’t support a bailout. I don’t support erasing the debt through inflation. I think Greenspan, mortgage brokers and flippers deserve to spend the rest of their lives eating dog food on the banks of the San Diego River for the mess they created (that we’re now collectively trying to deal with).
June 21, 2008 at 11:39 PM in reply to: Bank of American appears to have written the Dodd-Shelby banking bailout bill #226617ParticipantEasy to cast this as socialist Dems vs. business Reps.
Not the case. Think it through.
‘Socialist’ dems supporting a bailout keeps Wall Street, BofA, et al. afloat. How ‘establishment’.
The mortage mess is HUGE. It has the potential to send us into something worse than the Great Depression if it’s not managed properly. Everyone’s in damage control. They’re reaching for answers. And there are NONE. No easy answers.
See my previous comments about inflation. Nobody calls it a bailout, but that’s exactly what it is, on the sly. Devalue the currency, write down the debt. Everyone ends up poorer except those who borrowed and levered to the MAX. How is that better than a bailout? Where is the discussion of the insidious effects of inflationary policy?
Note: I don’t support a bailout. I don’t support erasing the debt through inflation. I think Greenspan, mortgage brokers and flippers deserve to spend the rest of their lives eating dog food on the banks of the San Diego River for the mess they created (that we’re now collectively trying to deal with).
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