Smarty_Pants

Confessions of an Austrian Economist

"The malinvestments and inane monetary policies of our decades past have created losses that must be flushed through the system. No amount of fiscal stimulus is going to cure the inevitable correction. All the government can do is redistribute the losses amongst those who have done no wrong" - Balderdash

I agree with this 100%. These losses WILL find a home, the entire crux of the 'crisis' is playing financial hot potato to see where they land.

As painful as it may be I would still advocate the Austrian / Mellon approach. Liquidate them all. Put the assets into the hands of those who have show prudent and responsible handling of their own assets during the years when everyone else was playing fast and loose. Let the leveraged gamblers suffer and serve as an example for others in the future

Will that be painful? Certainly. But 'saving' the big Wall Street banks is akin to sending the person who robbed you an expensive gift card for Christmas.

While the possibility of "chaos, turmoil, and civil unrest" is real, perhaps it will lead to the eventual removal of the gub'mint interferences which lead to the problem we are facing.

IMHO there are a great deal too many people who believe that they are owed a comfortable living regardless of their efforts and who need to understand that "nobody owes them nothing".

The political response and incessant panic mongering is as much about retaining political control as it is about saving the economy. If the dollar collapses the FED collapses with it. Eventually our creditors will read the writing on the wall, give up on us, and write off their losses, leaving us to fend for ourselves.

What the economy really needs it to remove those political controls so the markets can reallocate the available resources in an efficient manner without initerference.