On Oct 1, 2008, at 4:29 PM, raghu wrote:
Economic collapse? It seems like you have had quite a change of heart: as I recall you used to caution against dooms-day predictions even a few months back..
If there's a public sector recap, as there have been at many times and in many places around the world, there will be no collapse. There will be a recession, no doubt - in fact, we're almost certainly already in one - but without a recap, things will almost certainly be worse.
Also why bother recapitalizing the currently existing corrupt institutions, why not charter new banks, capitalize them with Treasury money and have them make loans, mortgages etc. If the existing banks cannot stay alive why not let them die and start on a clean slate?
That would be nice if you're willing to take 15% unemployment as a transitional cost.
You could also use some of the recap money to create new institutions. I'm all for that. I doubt our Congress is though.
Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
