Monday, September 29, 2008

A Rational Plan

I saw this vid today, and I like his proposal to address the financial markets. His plan addresses the issue the same way that I've indicated, an orderly and speedy restructuring and/or liquidation of insolvent assets.

What the Treasury has been doing, in seizing companies such as WaMu is egregious. Hank Paulson is circumventing the law and property rights principles to use the force of government to do what he thinks is best. These asset sales could have happened speedily and with due process. Instead assets were seized and disposed of, and the capital structures of the companies decimated.

I have a longer post on the principles behind government's proper role coming, but this gentleman has it correct as well. His proposal is here.

Congress did not defeat this bill based on any rational principle. It was for various politically expedient reasons depending on which group a congressman belonged to. I suspect another plan that is materially no different than this one, and another vote will be eminent before week's end. You must keep up the pressure.

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