Obama needs to print dollars

That is the only way out. Print more dollars and weaken the almighty dollar. There is no point trying to tax the rich. Firstly you cannot simply tax them on their assets just for being rich.. You can only tax income. Most of these people have thier income tied up as carried interest in hedge funds. That is capital gain and not current income. The ceo's and other corporate highly talented people get paid in stock or options - again capital gain. So there is no easy way of getting these people to share.

So, there you have it. Banks will not lend and the rich will not share the tax burden plus they have their tea party puppets peddling trickle down economics in Congress. That is a perpetual stalemate. If this was a game of chess, you would simply resign at this point.

Anyway, printing dollars is the best way to redistribute. Inflation will make your worthless homes more expensive relative to the mortgages. Stocks will go up since prices are in Nominal dollars, so everyone's 401k will look a lot healthier. The dollar will weaken and make US goods more competitive. Saudi Arabia and China will lose the real value of their Treasury holdings - we will pause here to shed a tear for them. There you have done it - you screwed the banks on the mortgages, hedge fund managers on their billions stashed away in dollars and some other countries that you do not particularly care for. Sure grandpa's social security checks will be worth less but hey the current plan calls for throwing grandpa over the cliff anyway. This way will be somewhat slower.

So Obama, get your hands on that printing press...

Who gets a piece of the 700 billion ?

Now that the Senate has passed this huge payout of taxpayer money, how does the loot get divvied up ?

Obviously, since this is US taxpayer money, it should go only to US banks. Foreign banks should not be bailed out, so they can be let out of this equation.

Obviously, market gurus like Goldman, that had absolutely no CDO exposure cannot suddenly come up with "troubled" assets to sell. So they are out. Paulson would not bail out his former Bank - that would look so very suspicious!

So that leaves just Citigroup and Bank o fAmerica, maybe some other smaller players. These guys have already written down billions, so they might actually start reporting profits on the sale of these positions.

The curious part of this drama is how did they come up with the 700 Billion number. Did anybody ask for the calculations behind this number ?

Also, the point of the entire crisis was that nobody could put a good price on these assets. How is the Treasury planning to come up wih a price ? Conversely, if the Treasury knew the price of these assets, it could just tell the market these magical prices. Why do they need 700 billion to backup the prices ?

The correct way to do this was to de-securitize these assets and ban securitization. This package is going to simply get us out of this crisis and defer the crisis for another decade.


Securitization is the same as printing money. This flood will cause inflation and a further dollar collapse. It needs to be curtailed right away.