My banks & brokers are doing fine through this "crisis". Then again, I did actually bother to read their balance sheets and risk policies before placing money, and keep a hawkish eye on the stock price just in case. Is paying attention really so hard that you want to fuck up the economy for everyone else out of pure laziness?
Bailout makes sense and sad that learned folks like Jim Rogers do not understand the 'extreme danger' that US financial system will be in if this bailout does not happen. Hope foreign nations like China, Saudi Arabia, Kuwait, Norway, Canada who are floating merrily in the export and petro dollars do their 25B a piece of investment. They know what will happen next if US goes into recession. Time to think and act in the global terms.
Yeah, Austrians usually triple the tax rate and add government programs. Not sure where you came up with that one. Thin air? Try 1921 instead. A fairly uneventful liquidation, nothing like the extremely un-Austrian response to the Great Depression.
No, it's sad to see so many buy into this hype and believe it will be cured by the same quackery that got us into the mess.
An Austrian School critique of Milton Friedman regarding the Great Depression: http://mises.org/story/2442 Note even Milton Friedman a noted libertarian advocated intervention in extreme situations. An overview: http://www.fee.org/publications/the-freeman/article.asp?aid=8132
what jim rogers and many others fail to realize is soros reflexivity. japan intervention prevented a much worse downturn. in the american case it wasnt the intervention that caused the downturn, the intervention came BECAUSE of the downturn. if rogers think everything will bottom out when the banking system is imploding and credit is disappearing I would suggest to him that the bottom is much lower than the thinks. this isn't about keynesian or other names, its about halting a self feeding collapse, if the government goes in a spending spree right now(by recapitalizing the banks), that cant make things worse RIGHT NOW, maybe down the road when the bill comes due but not right now
Obviously you fail to understand that solid balance sheets and sound risk policies of financial institutions mean very little when mass panic takes over. The best and most sound brokers can be forced out of business once people stop trusting them even if their distrust is completely irrational and unfounded.
Sometimes free market proponents behave like young earth creationists, anything that challenges their view of the world and they go haywire. on moral grounds they might be right on no bailouts, but thats on a ideal world. how come no other US president did as much to expand the welfare state as FDR?that wasnt because he was so socialist, it was because he was socialist AND got an economy that was nosediving, that was the only way to get away with his policies(congress also had to be welfare populists to get elected, no one cares about deregulation and tax cuts when everything is tanking)
And what does Jim do , he moves to Singapore which is controlled by the same communist bankers that the US is .