Read it, or we’ll be facing an
insurmountable economic crisis. Â Here’s a sampling.
Wall Streeters pat themselves on the back all the time for how creative they are financially.Â So get creative here.Â Create some sort of new entity and have banks contribute toxic mortgages into the entity in exchange for equity.Â Find some pension funds to invest in the new entity at a deep discount.
“The idea that the market is always right is a crazy idea. Laissez-faire is over.”
Well, until the shit hits the fan, maybe. But it can’t be stopped forever.
Here are a few observations I’ve made in my few years…
1) Unregulated markets are illogical, emotional, impulsive, abusive, and reactionary…in the short term. But in the long term they are rational and efficient.
2) Government is smart, able, and well-meaning…in the short term. But in the long term it is idiotic, inefficient, and oppressive.
3) People who act based on fear, emotion, and good intentions and only think in the short-term tend to pay for it heavily in the long term. Almost always.
Short term thinking got Barry Bonds the home run record. It probably shriveled up his nuts and took a few years off his life in the long term.
Short term thinking got people to buy houses they could afford to pay for while their adjustable rate was low. It caused them to get foreclosed on in the long term.
Short term thinking will give institutions that made bad
loans investments the ability to make more loans investments. In the long term, well, I guess we’ll see, won’t we?
Keep digging? Â Here’s a clip of Ron Paul addressing Congress this morning on why a bailout is disasterous in the long term.