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Friday, September 19, 2008

Economics? What Economics?

I checked the Webber-tubes this morning and apparently there is something wrong with the economy. I understand that there are banks holding bags-full of questionable IOUs and would like us to buy them for something north of a trillion dollars. We are going to do it. All I'm going to say is that we need to get something for our money. I'm thinking ownership of the offending banks would be a starting point. I'm talking about confiscation of all the stock and assets of the distressed lending institution or holding company. An added bonus would be that the executives of these federally held companies would be GS rated government employees pulling down a livable salary, but not multi billion dollar überbucks the former CEOs expected. While we are talking about separating the overclass from their ill-gotten gains perhaps disallowing deduction for salaries and bonuses in excess of a million dollars in the tax returns of corporations. There are many business overlords who made out like bandits in the last twenty years. A surcharge on past looting would be one way to bring justice to the bail out.

That takes care of the local problem, but international banking boys may not be so generous. The World Bank has a history of grabbing third world countries by the lapels and slapping some economic sense into the offender. We well may be about to get a dose of our own medicine. Higher taxes, lower spending and seriously decreased imports of consumer goods is the prescription usually given little countries.

New Deal anyone?

I beat Paul Krugman to these ideas, point by point, by better than five days. 

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