Wednesday, October 01, 2008

It's Not A Bailout. It's A Redistribution Of Liquidity Upward

OK, we're no experts on political theory, couldn't even play one on the tee vee, but even we know that when liberals and conservatives come together to vote something down, it has to be a bill that is so bad it makes you throw up a little in the back of your mouth. So apparently we know more about politics than we think we do, either that or there really is veritas in well, Stoli. It sounds better in Russian. Anyway, it seems all those years of getting our news from the Daily Show are finally paying off.

Now, after telling the middle class to stock up on canned goods, what sort of compromise will our elected leaders come up with to save all those CEO mansions in the Hamptons?

Senate leaders have scheduled a vote for Wednesday on the $700 billion Wall Street rescue plan rejected by the House.

Yeah, baby. 'Bout time the adults took over. The Senate's got some serious problem solving mojo going on. Whatcha gonna do fellas?

Majority Leader Harry Reid and GOP Leader Mitch McConnell say, however, that they're going to add a tax cut package already rejected by the House on Monday.

Right on. Take that you House of Unrepresentatives. Now we're...wait a minute. You've got to spend 700 billion more than you thought you were going to have to spend a month ago, from a budget that's already redder than a monkey's butt and your solution is to reduce the amount of money coming in even further? That's not economics we can believe in.

The bipartisan move caps a day of behind-the-scenes binge drinking on Capitol Hill over what sweeteners to add to the bill to attract votes from House Republicans. Oh, well lord knows we want to attract republicans. We mean, after all, it's not like they got us into this mess in the first place so we're sure they'll have some good idea on how to get us out.

Senate and House leaders, President Bush and the two rivals to succeed him all rummaged through ideas new and old, desperately seeking to change a dozen House members' votes and pass the $700 billion plan.

Ah, president Bush is involved. We feel much better now.

Congressional leaders hope the half-dozen changes under discussion will be enough to persuade as few as six House Republicans and six Democrats to undo Monday's stunning vote.

Here's an idea: Take out the part that rewards those greedy Bozos for being stupid enough to think they could get away with what amounts to a massive Ponzi scheme in the first place.

Bush renewed his efforts, speaking with McCain and Obama and making another statement from the White House. "Congress must act," he declared. Bush was talking about everyday Americans on Tuesday, not banks or other financial institutions. And no supporters were using the word "bailout."

Right. Because if you call a pig a fox, then people understand why it's wearing lipstick.

Hey, what are you looking at us for? That makes about as much sense as this:

The legislation under consideration, would allow the government to buy bad mortgages and other deficient assets held by troubled financial institutions. Woo Hoo! Got worthless crap? Sell it to Uncle Sam.

Belize is looking better and better.

1 comment:

B said...

I wouldn’t be surprised if the recent overhaul of bankruptcy legislation was designed for this economic situation; it turns human debtors into indentured servants. And that is necessary for the following reason:

The ’sssssss’ we are noticing with this credit crunch is just the leak before the big burst. This credit bubble has been inflated by a logorithmic base 10 scale of dollar creation.
The practice of using 90% of ‘real’ wealth for lending that can then be invested and re-deposited for recycling again and again for more and more credit probably has the same effect of simply printing more money. The difference between those two ways of creating wealth is that creating money by credit inflation redistributes wealth for the benefit of financiers. And printed money is real; not fake.

This credit bubble burst should, then, be creating a shortage of money. And the cure may be as simple as the government printing more money. The only problem with that scheme is that there would not be another bubble to burst to correct for over-inflation. Printed dollars don’t evaporate away like the ones the financiers are trying to sell taxpayers now.

And that is why those who have engineered this bubble need those new draconian bankruptcy laws. Only wage earners can turn this fake money into real wealth. And that is why the Bush administration and other supporters of the great bailout plan are adamantly against giving bankruptcy judges the right to restructure debt according to who is most responsible for making bad loans.

Bryant Arms