posted on Apr, 21 2009 @ 01:35 PM
As the stale economy continues to annoy the life of folks at large, the rescuers designated are more willing to consider other strategies to add fizz
to the works. The usual remedy to prop up the economy by lowering interest rates failed, coz this type of flu shot didn't work with the new strain of
virus that infected the system.
It's becoming more and more apparent that the Feds diagnostic tools were not sharp enough, so the remedy flickered. It wasn't applied with respect
to the very principles of the bailouts strategy. The Feds saw the house of cards precariously moving toward its side but failed to identify the king
of clubs that unleashed the domino effect; the Feds let Lehman Brothers go and that was a mistake, as they learned from the costly rescue of AIG with
credits frozen near solid that sent chills to the economy. Mission not accomplished . . .
There is a chance the opponents of the bailout strategy could be invited to the round table and their prescription could possibly find its way into
Hoenig said authorities must set up a procedure that would allow big nonbank financial firms to be temporarily taken over by the government.
Regulators would then replace management, wipe out shareholders and seek to sell the cleansed institution back into private ownership.
Stiglitz, formerly an aide in the Clinton administration, said the process of briefly taking over banks then selling them back to investors would be
much less costly for taxpayers.
This and other similar concepts became very unpopular with bonus loving execs who spread around propaganda leaflets with the word "nationalization"
printed in fecal colors. The propaganda had a schizophrenic effect on the lay populace that has found both words "bailouts" and "nationalization"
An "improving economy" doesn't mean stability ahead. A shot of morphine isn't the remedy to make a malignant tumor disappear, so watch out before
giving a call to you real estate agent.
[edit on 4/21/2009 by stander]