Two good reasons to read South Dakota Politics this morning:
- Dr. Blanchard offers a wonderfully non-ideological post that calls everyone, Dems and GOP, to task for not focusing on the very real problem of a world banking system that can't balance the books. Blanchard explains the problem in very clear, practical terms. Silly cries of "socialism" be jiggered, he says, "government should probably be taking over banks."
- After lo these many years, SDP has added comments! Yahoo!
Geithner & Summers will go down as Obama's greatest regrettable and flawed nominations UNLESS they immediately change course. They must force the insolvent banks to solvency - before banks receive any government help. Boards, managers, shareholders of insolvent banks must be wiped out. Bond holders must take a haircut - even if the bond holders include China, Saudi Arabia, etc.
ReplyDeleteOnly then will the banks in receivership/nationalization (it's the same) be able to be re-capitalized and returned to the adult world. Capitalism without failure is like freedom without Habeus Corpus.
Martin Wolf cranks it out of park in the first of a multi-part series.
ReplyDeletehttp://www.ft.com/cms/s/0/c6c5bd36-0c0c-11de-b87d-0000779fd2ac.html?ftcamp=Late_cta1a/NL/USMar2009/Vanilla_foc/0/
I tried to add a comment to SDP and it didn't take. Also they don't allow comments to every post - why? Maybe pass this along to them if you could. Thanks.
ReplyDeleteI'll check. I noticed a little glitchiness the first time I tried to post a comment at SDP, but the comment did appear the next time I checked the site.
ReplyDelete