I agree the gov't needs to help, but the Senate bill is not good enough. This came a cross in an email and it makes a lot of sense:
Before Congress does anything else they MUST take the time to hear from some real economists, like Nobel Prize winner Joseph E. Stiglitz, who offers real wisdom in this article from his article last week in the Nation magazine. Here are some excerpts:
With lack of oversight and transparency the cause of the current problem, how could they make a proposal so short in both? If a quick consensus is required, why not include provisions to stop the source of bleeding, to aid the millions of Americans that are losing their homes? Why not spend as much on them as on Wall Street? Do they still believe in trickle-down economics, when for the past eight years money has been trickling up to the wizards of Wall Street? Why not enact bankruptcy reform, to help Americans write down the value of the mortgage on their overvalued home? No one benefits from these costly foreclosures.
The Scandinavian countries showed the way, almost two decades ago. By issuing preferred shares with warrants (options), one reduces the public's downside risk and insures that they participate in some of the upside potential. This approach is not only proven, it provides both incentives and wherewithal to resume lending. It furthermore avoids the hopeless task of trying to value millions of complex mortgages and even more complex products in which they are embedded, and it deals with the "lemons" problem - the government getting stuck with the worst or most overpriced assets.
Finally, we need to impose a special financial sector tax to pay for the bailouts conducted so far. We also need to create a reserve fund so that poor taxpayers won't have to be called upon again to finance Wall Street's foolishness.
Too bad our leaders wouldn't listen to independent economists. We're stuck with the crappy legislation now, as Stiglitz is saying that although we goofed with this bill, we've run out of time. Let's hope the NEW Congress gets to work fast to fix all the problems with the OLD Congress's bill that favors the bankers, and is sure to pass soon.
Pages
Dislike it all, but believe a bill has to be passed.
<>
I agree the gov't needs to help, but the Senate bill is not good enough. This came a cross in an email and it makes a lot of sense:
Before Congress does anything else they MUST take the time to hear
from some real economists, like Nobel Prize winner Joseph E.
Stiglitz, who offers real wisdom in this article from his article
last week in the Nation magazine. Here are some excerpts:
With lack of oversight and transparency the cause of the current
problem, how could they make a proposal so short in both? If a quick
consensus is required, why not include provisions to stop the source
of bleeding, to aid the millions of Americans that are losing their
homes? Why not spend as much on them as on Wall Street? Do they still
believe in trickle-down economics, when for the past eight years
money has been trickling up to the wizards of Wall Street? Why not
enact bankruptcy reform, to help Americans write down the value of
the mortgage on their overvalued home? No one benefits from these
costly foreclosures.
The Scandinavian countries showed the way, almost two decades ago. By
issuing preferred shares with warrants (options), one reduces the
public's downside risk and insures that they participate in some of
the upside potential. This approach is not only proven, it provides
both incentives and wherewithal to resume lending. It furthermore
avoids the hopeless task of trying to value millions of complex
mortgages and even more complex products in which they are embedded,
and it deals with the "lemons" problem - the government getting stuck
with the worst or most overpriced assets.
Finally, we need to impose a special financial sector tax to pay for
the bailouts conducted so far. We also need to create a reserve fund
so that poor taxpayers won't have to be called upon again to finance
Wall Street's foolishness.
-- End Stiglitz Excepts --
-----------------------------------------------
http://www.pnhp.org/news/2009/october/meet_the_new_health_.php
http://www.youtube.com/watch?v=DQTBYQlQ7yM
Another good Stiglitz article, and video:
http://blogs.usatoday.com/oped/2008/09/a-chance-to-imp.html
http://www.cnbc.com/id/15840232?video=874100965
Too bad our leaders wouldn't listen to independent economists. We're stuck with the crappy legislation now, as Stiglitz is saying that although we goofed with this bill, we've run out of time. Let's hope the NEW Congress gets to work fast to fix all the problems with the OLD Congress's bill that favors the bankers, and is sure to pass soon.
-----------------------------------------------
http://www.pnhp.org/news/2009/october/meet_the_new_health_.php
http://www.youtube.com/watch?v=DQTBYQlQ7yM
"did you read it, it was "hidden"
Pages