Show Trials

Why is it that I feel that the Senate failed Us? One-Third of the Senate is standing for Election, and 25 Senators voted against the Bailout Package last night. The rest of the 100 Senators must of figured that there would be alternate adverse News before they had to risk reelection. By the way, the remaining Senators up for Election came from States most involved in the Markets, with the Senators knowing they would get much internal support. Louis Uchitelle find businesses being solicited for loans by Banks, and businesses taking loans at a 30% rate (which used to be usurious). I find such behavior indicative that good business practice has no trouble obtaining Cash, though threatened by corruptive Lending practice, while poor business practice is still being underwritten, though without the proper banking supervision (the Lenders are utilizing their own good Credit rating, to make usurious Profit off of fly-by-night operations?). We obviously need another $700 billion of liquidity, so that unsound Lending practice can continue!

The European Central Bank decided that fighting Inflation was more important than Liquidity, even if Corporate friendly Ireland had fallen into Recession. Does this mean that the EU decided that foreign Corporations making mass Deposits in Ireland was not worth Underwriting, because not even the reduced Deposits have a history of being spent in the EU? The defense of the Euro may make more Sense than pouring $700 billion more into a presently Sound currency like the American Dollar, all to subscribe loans equivalent to the above listed. Someone in years past, like Me, suggested that Globalization implied absorption of the hazards of foreign economies, without the significant magnitude of foreign Sales making the Risk-Taking worthwhile. I am wondering if it is worth a Month’s research to write an Exposition on the assumed hazard of Globalization (you won’t see Me expend such effort for People to read the first and last paragraphs).

Tyler Cowen is such a help in trying to catalogue the various Plans out there to resolve a financial crisis which might not exist (Some, er, Me, have suggested that it is only anxiety normal under a reduction of Consumption Demand). Consumers find themselves in a place where it is better to pay off Bills, rather than blow their next Paychecks. Waving to the Dow as it goes down may be a better formula, than is injecting $700 billion of Inflation into the Money Supply (remember that the Fed has already fed the Money Supply about $600 billion, without a ripple except in Consumer prices). I was always a Fan of the Stalin Show Trials of the 1930s. Maybe We should put the Investment bankers in a Court Docket, and start ranting at them; a much cheaper practice, with release for the Soul. lgl