Double Jepordy

I agree with Ed Glaeser’s article but not philosophy, as I feel he puts too much faith in the value of Free Trade. There is no fiscal restraint in Washington, and which has not been present for a long time–probably the 1930s. The rule of law is somewhat ridiculous; I possessing little belief in intensive regulation–of course, this is really not rule of law, but legislative expression of sentiment. Privatization is a beautiful term, which means little in a Capitalist society oppressed with regulatory restraints; there is no Capitalism where Government tells you how you must operate. Free Trade holds relatively little value to Anyone, if it does not increase actual real domestic production. The real judge of Free Trade is whether it allows the domestic Citizenry to attain a higher Standard of Living; fewer Jobs for less Pay does not seem like a valid Benefit. I do know that Government is spending too much as percentage of the GDP, while Taxes are at a foolish Low. I will re-raise the Posit that higher Marginal Tax rates actually incite business managerial assets to work harder to maintain their previous Income. One might seriously adopt the position that Recovery could be best obtained without any Recovery efforts by the Government institutions, where Risks are known, and the bottom-feeders could operate in Peace.

The previous Sentiment is sharply opposed by the Fed Chairman–Ben Bernanke, who feels that the Expenditure of Billions (Trillions) of Dollars to aid a wounded animal protects Someone. What is known is that the Companies in Question will be on the Endangered Species list for a lengthy Period, and will probably be permanently crippled. I listened with obvious disgust to Newscasters go on ad infinitum about changing the Names of these Companies, all to avoid the onus these Names have acquired; no one who has to deal with these entities will have the slightest doubt of who they are, or the difficulty that derives with dealing with them. A superficial re-Naming of the business will achieve absolutely Nothing. The hypocrisy of modern society is starting to cripple Society and Economy in itself, causing Everyone to waste Time in Translation.

I find fault here with the obvious assumption that the banks cannot shrink without the shrinking of the economy. Not only do I believe that forced expansion or maintenance of the banking structure will lead to Inflation, but it is my belief that the banking structure cannot acquire real equity as long as Government Cash floods the system. There is no setting of Price as long as the Government pump continues to flow. Profits are marginalized when they are sunk into a continuous fund filled by alternate source. No one knows when to Start, when to Hold, and when to Withdraw. Extension of Loans become automatic, with no evaluation of the Risk or validity of recovery stipulated. The whole Process becomes a Game Show, where an ‘Off the Cuff’ Answer wins the entire Pot. We do not need added Insecurity in the banking system. lgl