Posted on 09/24/2008 8:09:15 AM PDT by Nervous Tick
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The IRA: But doesn't the reaction to this crisis by a nominally Republican administration suggest that America is not the democratic, free market society we all pretend? The Paulson plan would leave the US government as the largest owner of banks and illiquid assets in the country. Does no one in the Bush administration and the Congress care about what happens beyond the next five minutes? Caps on executive compensation will be only the beginning of a process that will lead to wage and price controls as inflation rises. If this idiocy by the Democrats in Congress continues, we're going to start referring to House Financial Services Committee Chairman Barney Frank (D-MA) as "Napoleon" after the pig in Animal Farm.
Ely: While it is true that we live in a largely socialized economy, the answer to that problem is not to move towards even greater socialization, but to begin de-socializing the banking sector by getting rid of the GSEs while utilizing the cross-guarantee concept to privatize bank safety-and-soundness regulation, which will function much better than the present arrangement -- a government regulatory monopoly whose product-warranty costs (bank insolvency losses paid for through deposit insurance premiums) are paid for by well-run banks. To put this another way, well-run banks are at the mercy of the government bureaucrats at the bank regulatory agencies.
(Excerpt) Read more at seekingalpha.com ...
Like many of you, there is a tension between how I "feel" about the bailout (I'm STRONGLY against it!) and how I "think" about the bailout (it's complicated, and I don't know what I don't know).
In my humble opinion, this is a sober look at things by a couple folks that know what they're talking about. FRegards.
I’m interested in what you folks have to say about this. TIA for taking the time to read it.
ping
Should be http://seekingalpha.com/article/97125-what-is-to-be-done-an-interview-with-bert-ely
Admin Moderator -- can you please fix? Thx.
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