Sunday, March 23, 2008

Nucking Futz

Voltron says: some of the proposals being floated by normally sane and learned individuals are nucking futz. This is because the unprecedented steps the Fed has already taken aren't working.

  • Steve Forbes has suggested that banks be allowed to value all mortgage securities at face value. In other words, bury our heads in the sand.
  • An editorial in the Wall Steet Journal recommends that the government buy up the bad mortgages and bulldoze the houses.
  • Concern about moral hazard has flown completely out the window.
  • Nationalization of our banks is a real possibility. Of course there is no talk of nationalizing the privately owned Federal Reserve Bank itself!
  • Hillary Clinton is proposing a committee chaired by Alan Greenspan, the very person who caused the housing bubble. She's has also proposed a "forclosure timeout." Is this the soccer mom solution?

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