Market Discipline
The Obama administration and its allies in Congress have big plans for the economy. They want the Treasury to prevent systemic risk through the power to, as the New York Times puts it, “seize control of troubled financial institutions, throw out management, wipe out the shareholders and change the terms of existing loans held by the institution” (emphasis added).
Note that last item. Do these people ever look past their own noses? Do they not realize that this power would affect future borrowing big time?
Chidem Kurdas at ThinkMarkets says, “…lenders will no longer be able to enforce their contractual claims. Oh yes, that will be just the right remedy for a fragile credit market. You’ll tell lenders they’re toast! That will really get credit flowing. ”
Oh, this is all to be done in the name of “market discipline.”
Comments
4 Comments on Market Discipline
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Jacob Steelman on
Thu, 29th Oct 2009 3:08 am
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Matt Brooks on
Tue, 3rd Nov 2009 10:42 pm
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WDW on
Wed, 4th Nov 2009 11:01 am
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Jacob Steelman on
Wed, 4th Nov 2009 1:14 pm
Despite all the regulation of business that makes them like extensions of the government Americans have not seen anything yet as this Administration seeks to gain more and more control over the economy. It will become more and more absurd as government policymakers swing from one idea to another idea in an effort to “save” the economy. Go back an re-read Atlas Shrugged. It is all there.
“Go back an re-read Atlas Shrugged. It is all there.” Amen, brother! Ayn Rand said how it would all happen 52 years ago. Regulations bring about downfalls, which are responded to with more regulations. I’ve always been poor, and I want the government out of business completely. Guess it will happen when The Bridge collapses.
Thomas Jefferson,one of our grearest thinkers, said” That government governs best that governs least”.
WDW – the best government is no government.
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