The Wall Street Journal has a nice piece on how the Dodd and Frank bills would efficiently put the US economy in a perpetual state of TARP payments. Or, in other words – too big to fail as a national policy. How can people say with a straight face that Wall Street isn’t running the US government when they are soon to have pushed through legislation that bans the largest players from going bankrupt?? FDIC will not only cover deposits, it will cover everything. The US government will insure the entire US economy.
….want to care to guess what this will do, besides the moral hazard problem? The US government will BE the entire US economy.
When trying to get my mind around this, I can come up with no conclusion besides this one : It’s fucked. Completely.
The US economy is going to look like that of a 3rd world country within a decade. This is the toilet-shaped recovery.
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