Thursday, September 18, 2008

Buying illiquidity

We've going to get a sweeping plan, no less, to 'fight [the] crisis'.

The government, no matter how steeply discounted the purchases of 'illiquid' assests are, will always be left with a sack of shit. That's why they're illiquid. Initial estimates put the steeply discounted price tag at half a trillion, so count on more.

The Democrats, of course, will line up obediently to vote on the 'sweeping plan' without even debating the giveaway. Why bother? It ain't their money, and they have to go out and run for office on the big issues of the day.

It is said that history repeats itself, first as tragedy:

The program may look more like the Reconstruction Finance Corporation, a Depression-era relief program formed in 1932 by President Hoover that tried to inject liquidity into the market by giving loans to banks and other businesses.

And now we get the farce, once again it will be the same thieves that started the mess given the keys to the government's money.

But after the farcical aspects play out, it will be the same old tragedy.


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