Notes on the Bailout
1) No reform -- the bailout bill refuses to address any of the government regulations that caused the problem to begin with. The "private profits, socialized losses" issue will still be there.
2) Assume for a moment that the claims of panic driving down the value of assets are right, this bill isn't the right way to solve the problem. Other more direct reforms would be to get rid of the government accounting regulations. Or providing temporary bridge loans as opposed to having the government have to buy all these assets.
3) Not clear that it is needed. The claim about panic driving down the value of assets doesn't make a lot of sense. We keep on hearing that these assets are actually below their real value and that the government will make money buying these assets now and reselling them later. If so, why won't private parties around the world see the same profit opportunities?
4) Why would we be bailing out foreign financial institutions?
2) Assume for a moment that the claims of panic driving down the value of assets are right, this bill isn't the right way to solve the problem. Other more direct reforms would be to get rid of the government accounting regulations. Or providing temporary bridge loans as opposed to having the government have to buy all these assets.
3) Not clear that it is needed. The claim about panic driving down the value of assets doesn't make a lot of sense. We keep on hearing that these assets are actually below their real value and that the government will make money buying these assets now and reselling them later. If so, why won't private parties around the world see the same profit opportunities?
4) Why would we be bailing out foreign financial institutions?
Labels: mortgagecrisis
posted by John Lott at 2:45 PM
1 Comments:
TARP was not needed. It was a welfare check handed out to the Wall Street gangsters from both the Ds and the Rs. If our politicians would have voted NO to bailing out GS/AIG/BOA two years ago, this country would be on its way to recovery. It probably would have taken another ten or so years to reset our system away from the Wall Street gangster system, but we would have given our children and grandchildren a fighting chance at calling themselves an 'American'. More guns, Less Wall Street crime.
Post a Comment
<< Home