A Political "Solution" (Thomas Sowell)

Townhall.com ^ | September 23, 2008 | Thomas Sowell

[jazusamo]

*PING*
Thomas Sowell

Recent columns
The High Cost of Radical Hype
Idols of Crowds
The Vision of the Left

Please FReepmail me if you would like to be added to, or removed from, the Thomas Sowell ping list…

[P-Marlowe]

Every time I read Thomas Sowell, my IQ goes up a couple of points.

Pretty soon it will be in triple digits.

[doc1019]

Amen!

[jazusamo]

Bump! Mine too. :)

[mcenedo]

bump

[mcenedo]

bump

[Reagan Man]

So Thomas Sowell has no ideas to offer that might begin to address the issues in this current credit crisis. Except to say, the Bush proposal could work. Okay.

I guess handing $700 billion over to Hank Paulson is the answer then. LOL

[George Smiley]

He didn’t say that he had no ideas- he just implied that it was a screwed up idea to expect the same people that created the problem (Congress, esp. Democrats) to fix it.

Straight out of his book “Vision of the Anointed”.

If you really want to see just how brilliant he is, go and read his book “Knowledge and Decisions”.

[Billthedrill]

I was waiting for Sowell's take on this and he didn't disappoint. He seems as resigned as I am to the bailout, which is, I think, a bad thing being done for laudable enough, but short-term, reasons. I am not at all convinced the country couldn't survive the inevitable credit crunch should these institutions be allowed their well-earned failure. But it's irrelevant; the fix is in, the decision made. However, let us not think that nobody warned us, or that the result wasn't built into the system:

The hybrid public-and-private nature of these financial giants amounts to "privatizing profit and socializing risk," since taxpayers get stuck with the tab when high-risk finances don't work out.

And so it was, and if I am tempted to invoke the phrase "made out like bandits" for certain senior members of the debacle that's laying stinking in our collective lap, it's because the phrase is accurate. The rest of us get to pony up. Now, I would personally be willing to lend my money to someone willing to clean up the mess on the understanding that it would be repaid. It won't. And if it isn't the whole thing will happen again.

[Reagan Man]

Save it. I've been reading Thomas Sowell for years.

This is about the lamest piece he's ever written.

[george76]

Franklin Raines, who made mega-millions for himself while mismanaging Fannie Mae into a financial disaster, is one of Obama’s advisers.

[jazusamo]

As sad as it is you’re probably right.

[jazusamo]

He sure is and I wonder how much cash he’s invested in BO?

[xjcsa]

If you really want to see just how brilliant he is, go and read his book “Knowledge and Decisions”.

Very true. That book is the source of most of my economic philosophy; it was the primary text for a class I had in college.

[EDINVA]

Isn’t that the truth !

[sima_yi]

Were I the president, I would make a couple of phone calls; one to Dr. Sowell, and another to Dr. Walter Williams. I would ask them to come to Washington, get them the research assistance and the data they need, and ask them to come up with a workable solution.

I believe it would take them maybe, a week.

[jazusamo]

I believe that is an excellent idea, I doubt there are two better qualified than them to tackle this mess.

[SupplySider]

If the government wants to back mortgages, bank accounts, money market funds, or anything else, be explicit about it and offer a lower rate of return to pay for the guarantee.

For example, checking accounts could come in two flavors. One backed by T. Bills with a lower interest rate, and one backed by commercial paper with a higher return. With big red letters stating the risk above the line you sign to open the account.

My two cents.

[Know et al]

How has T. S. missed being Sec. Treasury?