Posted on 12/01/2011 6:39:45 AM PST by St. Louis Conservative
This week we also learned more about the underhanded and undemocratic ways in which the Federal Reserve saved big banks last time around. (You should read Ron Suskinds book, Confidence Men: Wall Street, Washington, and the Education of a President. To understand Mr. Geithners philosophy of unconditional bailouts, remember that he was president of the Federal Reserve Bank of New York before becoming Treasury secretary.)
Is there really no alternative to pouring good money after bad?
(snip)
The goal is simple, as Mr. Huntsman said in his recent Wall Street Journal opinion piece: make the banks small enough and simple enough to fail. Hedge funds and private equity funds go out of business all the time when they make big mistakes, to the notice of few, because they are not too big to fail, he wrote. There is no reason why banks cannot live with the same reality.
The path we are on leads to more state ownership of banks in Europe not a good idea and, in the United States, huge open-ended subsidies to private banks. Executives in those banks get the upside and American taxpayers and workers get the downside a huge recession, damage to millions of lives and a huge run-up in government debt because of lost tax revenue.
(snip)
Mr. Huntsman has also spotted the fatal flaw in Basel III: The Basel III Accord primes the pump for the next financial crisis by putting its thumb on the scale of sovereign debt, making it less expensive for banks to invest in those instruments without making a realistic risk assessment. Again, in the light of recent developments in Europe, who can dispute this?
(Excerpt) Read more at economix.blogs.nytimes.com ...
Sure he will.
Read his proposal, then compare it to the other candidates in the race. Huntsman is the only one talking about this - and this is a HUGE issue. Make no mistake, we are on the path for another credit crisis if nothing changes.
I have to say that I’m impressed by the Huntsman though Ron Paul is still a far superior candidate. He’d be a good veep for Ron, however.
That’s great because Huntsman can then focus on using the money instead to repay the U.S. debt owed to his Chinese masters. Or at least pay for a family wedding to one of the princelings.
“One evening early this year, a red Ferrari pulled up at the U.S. ambassador’s residence in Beijing, and the son of one of China’s top leaders stepped out, dressed in a tuxedo. Bo Guagua, 23, was expected. He had a dinner appointment with a daughter of the then-ambassador, Jon Huntsman...”
http://online.wsj.com/article/SB10001424053111904491704576572552793150470.html
Well, I don’t know what to tell you except if that’s your guygo for it.
Not me.
15 Trillion in deficit spending... 100 plus Trillion in unfunded mandates... 16.1 Trillion given to eu banks in secret by burnandyankme... and another trillion given to these same failing eu banks yesterday... all future tax receipts from an economy that is dying. It is over... how we rebuild is the only thing we need to focus on.
LLS
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