Translate

Saturday, July 18, 2009

Imagine there's ... no bailouts

Why the crisis hasn't ended, Prof. Joseph Keckeissen at mises.org

Excerpt:
Why hasn't the crisis ended as yet? It should have been all over with and forgotten by the first of last February. If so, the whole troubled world would have already issued a huge sigh of relief.

There would be no more impatient dilly-dallying on the part of investors, waiting for the government to decide who are going to be the recipients of the new trillion in handouts, and causing daily upsurges and downfalls in the unsettled Dow.

Assets would have fallen to their normal worth, the present discounted value of their future returns. No need to wrestle with mark-to-market account. No need for Sarbanes and Company to meddle and make newer and stiffer regulations. No need for new super controls.

Mr. Geithner wouldn't be stressed to invent new ways to cajole folks to contribute to the buyout of overvalued securitized junk. Nor would there be the least excuse for more G20s to be needled into bastardizing their overbloated monetary systems. Mr. Bernanke would have stopped acting the role of Santa Claus, distributing the government-invented moonshine to the denuded former greats of Wall Street.

The corpses of the erstwhile automobile empires would have breathed their last, their good assets now transferred to the hands of newer more responsible entrepreneurs. The prior executives would be moving over to Cheapside and brushing off their overalls, perhaps in line to join a new remodeled UAW, in search for some job where they couldn't mess things up any more.

The bankruptcy courts would be finishing up their exequies for the deceased former titans of the packaged debentures. The tombstones of the new economic cemetery would display the once great names of Fannie and Freddie, of Citi, of AIG, of Merrill Lynch, along with the hapless Lehman Brothers, interred several months before. And so many more financial cadavers would have been laid to rest, their memory duly to be forgotten, as perpetrators of a fake capitalism now buried and forgotten. Perhaps the cemetery could be economically located in an enlarged churchyard at Trinity Church at the head of Wall Street, to occupy the now excess real estate in the area and be a perpetual reminder that treason in the capitalist world will always be avenged.

Washington would finally be silenced, even if the Fed were not yet duly junked in the process, and the Treasury's overbearance would be bridled as the rest of the uneconomic trash was being flushed out of the system.

The Case Shiller indices would have completed their downfall to a level that future homeowners could devote the traditional 30 percent of their money incomes towards purchasing their long-wanted love nests. New families would be rushing in to fill the vacant home sites.


By the way, Professor Keckeissen appears to cut quite the distinguished figure, as well as being a member of a Catholic Order. Wonder how he ended up teaching in Guatemala.

No comments: