Sep 18 2008
Economic Perfect Storm: Fed Considers Very Bad Idea
At the moment, our vaunted Federal financial whizzes are about to take a whiz in everybody’s beer. The formation of an “entity to absorb bad debt” will not only relieve bad decision-makers in our failing financial institutions to escape the consequences of their bad policies without so much as a bloody nose, this entity would institutionalize the practices that are driving the situation.
Imagine the talk in the boardroom:
“George, we can’t possibly repackage all those bad mortgages into a new derivative option for sale. That adds more risk.”
“Ah, don’t worry, Ralph! The Feds will cover us. We sell’em, as soon as they go south we scream for offloading of the debt and move on.”
“Good idea, George! Solves two problems at once! How about another 100 million shares in your options pile for such clear, incisive performance? Especially now that Uncle Sam will guarantee those shares will be worth a load of cash…”
Bad. Very, very bad.
You should consider calling or writing your Senator and Representatives and strenuously screaming and pounding objecting to this concept.
You should also listen carefully to which candidate, Obama or Palin, will support this thing and be sure not to vote for them! Once corporations are given free reign to misbehave and dump the problem on the American taxpayer, we’ll all go broke…
Seeya ‘Round the Ol’ Welfare Line…
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