BucEyedPea
09-27-2008, 12:52 PM
This video (http://blog.mises.org/archives/008629.asp) puts the current situation in perspective:
This is a bailout of previous bailouts....of a previous bailout, all trying to fix the unintended consequences of the previous bailout. There's no magic button here. That financial markets will collapse is a fallacy and scare tactics. The video recommends a solution. Meanwhile the markets are restoring soundness to this govt-rigged system.
In my opinion, there has been no greater CNBC commentary on the Wall Street bailout than this one by Peter Boockvar, equity strategist for Miller Tabak.
His main points: This is a bailout of several failed bailouts. The top banks would have $400B of lending capacity with no taxpayer funds (more than half the federal bailout) if they would simply stop paying dividends to shareholders. We should let the economic cycle run its course. Government intervention slows down the necessary process of deleveraging that needs to take place.
This is a bailout of previous bailouts....of a previous bailout, all trying to fix the unintended consequences of the previous bailout. There's no magic button here. That financial markets will collapse is a fallacy and scare tactics. The video recommends a solution. Meanwhile the markets are restoring soundness to this govt-rigged system.
In my opinion, there has been no greater CNBC commentary on the Wall Street bailout than this one by Peter Boockvar, equity strategist for Miller Tabak.
His main points: This is a bailout of several failed bailouts. The top banks would have $400B of lending capacity with no taxpayer funds (more than half the federal bailout) if they would simply stop paying dividends to shareholders. We should let the economic cycle run its course. Government intervention slows down the necessary process of deleveraging that needs to take place.