Skip to comments.Solving a national financial crisis in 24 hours.
Posted on 10/12/2008 8:21:56 AM PDT by gpk9
We dont have a credit crisis. We dont have a liquidity crisis.
In the last few weeks the Fed and U.S. Treasury have made more credit and liquidity available than ever before in history.
They've had no impact. Markets ignore them and keep dropping.
Here is a quote from the Financial Times story "The week that panic stalked the markets" , October 10, Michael Mackenzie and John Authers:
"The crash in equity markets this week came as investors fled risky assets in panic. Coordinated rate cuts by leading central banks, and many other measures of support hastily adopted by governments, went ignored." [emphasis mine]
(By the way, these two chaps believe credit markets are frozen. Same nonsense we hear in MSM.)
Adding more credit and more liquidity won't help. Markets will ignore that too.
We have a confidence crisis.
Just plain ole fear. Afraid to take risk. Pulling back. Hedging. Holding. Safeguarding whatever is left.
Its the same thing that caused all previous financial crises except one the crash of '29. It was in fact caused by a credit squeeze but none since and not this one.
No amount of injected credit or liquidity will solve a confidence crisis. You don't have to believe me. Open your eyes and look around.
The financial crisis in America can be solved in 24 hours.
It has specific pinpoint causes that can be resolved with the stroke of a pen, putting a signature on a one-page order.
A one-page order that would instantly restore confidence.
Not saying everything would return to normal that quickly, but we would be on the way back to normal that quickly. Markets would turn around. Overnight.
It wouldn't cost a single taxpayer dollar. None. Zero.
It wouldn't be anything new. No new law. Perfectly consistent with long-existing law.
It would resolve the crisis where the crisis started.
Those in authority know what that one-page order would be.
Will they do it? Do they really want to do it? Do they really want to solve this crisis?
Do they have the political guts to solve this crisis? Oh yes, it's political. Purely political. There is no fundamental systemic economic problem.
Or do they have some other agenda? Does this crisis serve some other purpose?
You going to tell us what this magical mystery measure that would solve all our problems is, or just post 3/4 of a vanity and leave?
yea please tell us what this instant easy fix is...
I don’t get it. What’s ON the one-page order? Did I miss something?
Hey I have a piece of paper. I’ll sign it right now and mail it to Wall Street right away to fix everything! Thank you Mr. Wizard of Wall Street!
Well, cough it up. The world's a-waiting.
Is it on the Clowerd-Pivin chart?
"Never send a monkey to do a man's job."
~ Captain Leo Davidson
"A nation can survive its fools, and even the ambitious.
But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly.
But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself.
For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men.
He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist.
A murderer is less to be feared."
-- Marcus Tullius Cicero
If it has anything to do with Dave Barry, I'm going to bust a vein, lol.
I think he’s talking about the resignation of GWB and or Paulson.
No one will give a hoot if any other politician resigns.
The markets lack confidence because they, properly, believe that the U.S. is about to elect and “turn-key” socialist. This socialist, Barry “Two-Pack-a-Day” Obama, has with the backing of ACORN pledged to raise taxes. On everything and everyone. As they teach you in college Finance 101, the valuation of any asset (stock) is the net present value of the after-tax cash flow. Well good old Barry has promised to substantially reduce that cash flow along with the democratic controlled U.S. Congress. What do you expect the markets to do.
My guess - kill all stupid people or, more politically correct, everyone must pass a test prior to voting.
Bunny is a lot smarter than Paulson. No one believes a fox can guard the hen house. And the bunny knows the fox will eat him.
Nah, the one-pager is an order telling all the Lizard aliens inhabiting the souls of the Fed and WallStreet to return back to their parallel dimension, or else the US military will start squishing any legged reptiles they come across!
Hey, since the one-pager is a 'mystery,' it could very well be that!
Much of the world is essentially socialist. Projecting our fears and desires upon that world, in an attempt to explain our current economic difficulty, is mistaken. That world appears to actually prefer Obama. For that, they're fools, of course, but the fact remains.
A one-page law that ceases government support for undesireable behaviors and instead, rewards desirable behaviors!
I'd settle for sugically removing the Skeletor symbiotes from Paulsen, Chertoff, that new pup from GS ... what the heck, let's go for Carville, too. May as well strike the mothership, lol.
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