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Thursday, October 2, 2008

One down...one to go.

The Senate has passed the bail out. That is good news. I know, I know, all the ornaments on that tree are sickening. Well, economists would call that "the transcations costs of democracy". Dry your eyes and vote it in. Do it.

Things always come with price tags and unpleasantries. I once went on a blind date with a girl with no front teeth. It was a bit of a shock but I had two choices. Run like hell or make the most of it. I made the most of it. Besides, she was pretty and we had a good time. I figured maybe I could talk about dentistry later. I just made sure corn on the cob was off the menu.

OK, this bill got no front teeth. So what. If it saves your job and stops a worldwide financial and economic meltdown, things will be just fine and $700 billion will be a bargain.

Oh hey, and one last thing. Few mention the fact that the Resolution Trust Corp. of the 1980s and 1990s was actually a money maker when all was said and done. If I remember correctly Congress even held hearings back then to try and indict those who bought cheap assets from the government and actually (gasp!) turned them around for a profit. This won't cost us $700 billion either in the final analysis. But few will remember it. Like Ray Donovan...indicted on page one...acquitted on page 38 in section D of the newspaper. It's all good. Just stop the meltdown.

1 comment:

Jim Taunton said...

most pundits agree we need the recue plan to grease the wheels of credit, however, unlike RTC#1 where you had shotty companies that owned good assets, this time we have good companies that own shotty assets which the gov't would be buying. How can we expect to make mony on these assets and what other option do we have to put an IMMEDIATE shot of cash into the system without which we may be in deep trouble?