The Republican re-election plan, such as it is, has been to blame GSEs- Fannie Mae and Freddie Mac – for the subprime crisis. Meanwhile, the Republican administration’s new plan is – to make every bank a GSE! LI loves the smell of cognitive dissonance in the morning!
So, basically, the developed countries (save for China, the new home of the free market) have put their treasuries on the line. This will be an interesting game. As we pointed out before, the shrinking that is going to come will wipe out a lot, as in hundreds of trillions, of value, namely as the 550 trillion dollar pool of derivatives comes back to earth. Since nothing on earth – including the combined treasuries of all the richest nations – has that much money, the decision that is coming up is how to let it go. LI advises readers to check out the popping of John Law’s system for pointers. Or ... the Grimm’s tale about the Fisherman’s wife who wished to be God.
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No cognition, no dissonance.
ReplyDeleteScissors, if I can make so bold as to address you by the first name - are you available for private appointments? Obviously, you are both zen master and psychologist! Having cleared up this matter with lightning speed, I have been having a little trouble with kleptomania, depression, a delayed Oedipal complex and multiple personality disorder I was hoping you could help me out with. It won't take a second!
ReplyDeleteWhile I'd be happy to take your money, I thought that quip was something I'd read here in another context.
ReplyDeleteOTOH, I suppose that might make me like an old-fangled psychoanalyst, just remaining silent or reflecting back the analysand's utterances.
$150, please. I'll see you again on Friday.
Will it be another 15 minute session? I need to know how often I have to sell my sister for this one.
ReplyDelete