The idea is to take as much as you can. As the saying goes: “You only have to make a fortune once in a lifetime.”
Their plan now is for icing on the cake — to take Mr. Paulson’s $700 billion and run. It’s not a “bailout of the financial system.” It’s as giveaway — to insiders, to sell out all their bad bets.
This change always is sudden, arranged under emergency conditions.
These bad loans are toxic because they can only be sold at a loss — if at all, because foreign investors no longer trust the U.S. investment bankers or money managers to be honest. That is the problem that Congress is not willing to come out and face.
Thursday, September 25, 2008
Debt expansion and forgiveness: Bring the Jubilee
I've read a few interviews with Michael Hudson, a former Wall Street economist and professor of economics, and have found them relatively easy to follow (given how confusing all the Wall Street gobbledygook can be) and very insightful. Here he talks about the history of credit and debt, and the role of debt forgiveness (i.e., the Biblical Jubilee). This entire piece is well worth reading.
Posted by Thom Foolery at 7:34 AM