Posted on 09/25/2008 4:18:30 AM PDT by Renfield
Why should we believe them?
Ben Bernanke and Hank Paulson, that is. What have they done to earn our trust? Nothing they have done has seemed to work, and their policies allowing the dollar to weaken drastically in recent years quite arguably played a big role in causing the current economic troubles.
But let's look at their crisis management.
First they bailed out Bear-Stearns. A very wise man who is "in the know" told me about six weeks ago that all the government should have done with Bear was to step in just long enough to stop the panic, while continuing to work to try to help find a buyer such as Bank of America -- but without putting taxpayers on the hook as a backstop. If no buyer were found, the feds should just have served as referee for an orderly liquidation. Let the Chinese bond-holders soak up the losses. Work to strengthen the dollar to make dollar-denominated assets more attractive. Cut corporate taxes. Increase domestic energy production. And let the markets work -- including letting them take the short-term hit from the collapse of Bear....
(Excerpt) Read more at spectator.org ...
My guess is that NO ONE has a clue as to the answer to this financial conundrum.
I have a question regarding where this 700bl will actually be divvied up:
Will it go to student loans? car loans? the 3 auto makers?
The reason I ask is because 1)my Husband heard this yesterday from a syndicated radio talkie and 2) I haven’t heard anyone talk about exactly how much is going to be used to give to the slugs that are being foreclosed on.
Has anyone noticed that FOX NEWS is watchable again. Notice that Rupert Murdoch said about B.O. the other day that he would crash this country’s economy. I think he has given a heads up to Roger Ailes that Fox needs to give conservatives red meat and report on the issues of the economy in a way that shows that Barney Frank and Chris Dodd and their ilk are responsible for this mess.
McCain should make sure that he does the right thing by the taxpayer on this thing today. Go FOX NEWS, THE NETWORK WE USE TO LOVE HAS RETURNED.
It takes time to sort through all the financial instruments to figure out what they are actually worth. Right now buying financial instruments is like buying a foreclosed home without being able to look inside. There isn't a lot of people willing to do it.
There needs to be a financial clearing house of some kind to provide time to sort through all these bundled assets. The question is who is in charge of the process and who funds it.
Some say do nothing and let market forces work in the purist form. If that happens there are going to a lot of babies thrown out with the bath water..
---Ludwig Von Mises
Paulson and Bernanke are choosing option #2.
www.fedupusa.com
Go view the videos, specifically the “problem” and “solution” videos. 10 minutes of your time and it’s well worth it.
Yes, there is a solution but it doesn’t involve bailing out Wall Street.
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