Thursday, October 30, 2008

Jesse Channels IA

I was preparing a post on an 18 October 2008 WSJ Anna Schwartz interview by Brian Casey. Then I read Jesse's Cafe Americain post that makes most of what I had to say redundant. Here's a link:

Mark Thoma at Economist's View thinks "Schwartz is too hard on Bernanke". I disagree and think she went too easy on him. Repeal the Federal Reserve Act!

"Now that the Federal Reserve and the Treasury Department apparently have merged to reconstitute the Bank of the United States, where is our Andrew Jackson to slay it?", Zev Joseph letter to the WSJ, 17 October 2008. Precisely!

"It is nothing less than astounding that the most perceptive analysis of our credit crisis comes from a 92-year-old economist who is probably unknown to most members of the general public. ... The government's frantic efforts to 'do something' have very much impeded the necessary process of creative destruction that kills of insolvent firms and enables more efficient firms to survive and prosper", Jerry Templeman letter to the WSJ, 22 October 2008.

I wonder if Tempelman has Goldman Sachs (GSG) in mind? I do. Now report IA to Mike Garcia to get IA indicted for treason. Treason? Thinking such thoughts of GSG. How dare you? If GSG failed, the Republic would follow within an hour. Could an investment bank exist that only paid its CEO a $20 million bonus as opposed to the $67.8 million Lloyd Blankfein got in 2007? Treason.


edgar said...

as a taxpayer i am prepared to pay goldman sachs the sum of one trillion dollars if they will just quit f@cking things up.

Independent Accountant said...

The thought is intriguing and I considered but rejected your proposal. Why? Suppose you paid GSG $1 trillion to go away. What would likely happen? In a month, GSG would be back saying, "Oh. We thought you were giving us $1 trillion a month".

Edgar Alpo said...

only $1T per month? okay.

Anonymous said...

Better yet just nationalize the ownership of paycheck companies (PAYX) and give to GS and they can get a fee from every worker at payday... (you want to be efficient collecting that $T every month)

It seems silly to even have the gubbermint in the middle... slows down the velocity of caze flow to the "Golden Sacks".

Independent Accountant said...

Let's repeal the 13th Amendment and reinstitute slavery. I'm sure GSG has prepared a plan to do just this. Now all GSG needs is the right set of circumstances and the man, not from Uncle, but GSG will be at your door to take you away in chains.

Jesse said...

Here are some thoughts on the causes of the first Great Depression. The venue does not lend itself to depth, so please do not try to read too much into it that is not explicitly there.

The key message is that reform and rebalancing is a necessary part of the rescue.

I'm not sure I would abolish the FEd, but I'd certainly clip their wings, and make the bankers howl in the style of Andy Jackson.