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What to write about?

Everyone over the past two weeks wants to talk about calamity, so I think I'll avoid that. I think some bailout bill will be passed, and who knows what effect it will have? My personal view corresponds most closely with an email sent into Pamela Geller:
I give up. The patient, the US economy, arrives in the ER after suffering a major heart attack, but still alive and capable of a full recovery, if treated quickly and appropriately. But the "doctors", Laurel and Hardy AND The Three Stooges, aka Congress, argue over who gets to perform the emergency kidney transplantation.
Huh?
The Democraps try to sneak into the fine print, tax breaks for wind energy, solar power, and subsidies for community activists. The Repuglicans try to sneak in a capital tax break.
And both parties are trying to suck up to the American Bankers Association, which dearly wants Congress to make the taxpayer to take all the foolish bad loans off their books that they wrote in the Greenspan drunken easy credit orgy. (Okay, mebbe the word order needs rearrangement.)
The Mainstream Media running dogs fall over themselves trying to sell the kidney transplant as painful but necessary.
It isn't needed. Neither is the bad loan bail-out, except for the bankers.
What is needed, and IMMEDIATELY, is the restoration of Public Trust in the banking system. This is something different bad mortgage loans or liquidity. The world is awash in dollars, as the zero rate of return on three-month T-Bills shows.
All our politicians have to do for now is to copy the Irish Government and guarantee bank deposits regardless of size or maturity. That will stop the bank runs and won't cost much, if anything. Stopping panicky depositors from withdrawing their money will allow the banks to hang on their REO portfolio and not force them to sell assets at fire sale prices.
The other immediate step is to end mark-to-market pricing on the collateral for performing loans. This idiotic blanket mark-to-market rule is what destroyed Washington Mutual and is pressuring all lenders to raise capital by any means. Allowing original valuations to stand on the collateral of performing loans, which are OVER 90% of loans, will end the death spiral of forced sales and downward collateral reassessments based on the last fire sale price.
That's all that's needed for now. It would be good to restore all the prudent measures instituted in the 1930's in the wake of the 1929 financial crash and subsequent economic depression, like Glass-Steagall, the uptick rule, 12-to-one maximum permissible leverage for investment banks, etc., etc.. Those wise rules, regulations, and laws protected us from the folly of foolish men for a long time.
Erasing them was the Clinton and the Bush Administrations most reckless actions.
But will Congress do it? Or will the Stooges continue to point fingers at each other and to argue over who gets to operate on the patient while still trying to curry favor with their most generous campaign contributors?
"History teaches us that men and nations take the wisest course of action only after exhausting every other possibility." - Addis Eban, anthropologist and former Israeli Foreign Minister.
I sick of this election, also. Why don't we just make Congress and the Presidency hereditary positions and save the money, time, and anxiety of staging rigged elections? The Ottoman Empire and the Hapsburg Empire were successful for many centuries, much longer than our Republic, with generation after generation of hereditary idiots sitting on the throne.
The Obama Empire has a nice ring to it. It could last for 500 glorious years or more.
Daryl

My view is not quite that bleak, but you get the idea. Paul Helm has a good article on natural law that's worth a read, while Andrew Bostom discusses Jew hatred contained in the Hadith.

In other news, it appears that the U.S. government waited until at least 1908 before it invented AIDS to kill black people.

Posted on Thursday, October 2, 2008 at 07:56PM by Registered CommenterPRCalDude | Comments4 Comments

Reader Comments (4)

All our politicians have to do for now is to copy the Irish Government and guarantee bank deposits regardless of size or maturity.

The Taoiseach (i.e. Irish Prime Prime Minister) Brian Cowen was only able to pass this measure after telling the EU Competition Authority to get lost and mind their own business.

October 2, 2008 | Unregistered Commenteraengus

It isn't governments job to allow or disallow mortgage companies to make bad loans, and it isn't their job to keep people from making bad judgements.

It is, however, the governments job to punish mortgage companies for being deceitful in their lending practices.

What we really need is a mortgage refinancing process whereby people in trouble can refinance their homes with more favorable amounts and interest rates. ... but, wait... we can now.

If you have a bad loan contact your mortgage company immediately. I am currently refinancing my home with less favorable credit but getting better loan terms and a 3% lower interest rate.

As the person quoted above notes, we don't need a bailout. We just need to let the current mortgage industry adjust.

However... it would help to make a point if we maybe put some decietful mortgage brokers and government people in jail. Top of my list on the government side is Greenspan, Paulson, Barney Frank... to name just a few. This is government corruption at its worst and government shouldn't be able to pawn off their punishments on the backs of the taxpayers.

October 3, 2008 | Unregistered CommenterLawrence

I'm glad you are moving away from posting doom and gloom. I'm about ready to jump from a tall tree limb with a noose around my neck and shoot myself in the head on the way down.:)

October 3, 2008 | Unregistered CommenterSameNoKami

I'm glad you are moving away from posting doom and gloom. I'm about ready to jump from a tall tree limb with a noose around my neck and shoot myself in the head on the way down.:)

Bad things may happen, but they may not. Whether we choose to believe that they WILL is our own choice. I know which outlook is mentally easier to take.

October 3, 2008 | Unregistered CommenterPRCalDude

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