Good analysis of bailout

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dana Blankenhorn <dana () a-clue com>
Date: September 21, 2008 6:44:37 PM EDT
To: dave () farber net
Subject: Re: [IP] Good analysis of bailout

Dave.

Rather than trying to add non-germane provisions, a true leader at  
this point would concentrate on key points.

1. Who's going to be in charge of this money? We need a trader who  
will be working for us, not the crooks.
2. What will the price be on the assets being acquired? How much on  
the dollar are we willing to give?
3. What happens if the price the government can get for the assets it  
buys is less, even after some time has passed, than we paid?  I would  
suggest we make the difference a charge against the earnings of the  
company selling us the junk. The charge could be amortized over a  
reasonable period of time, and the charging could begin after the firm  
in question returns to profitability.

The whole idea is to use our capital pile to buy time, liquifying the  
market in the short term and selling the assets on a reasonable basis  
afterward. We can actually make money on this if we the people do it  
right. We can also dump another trillion down the sinkhole.

If you stand on those principles this week, you can win some  
concessions. If you go after free money for the middle class, you not  
only lose the trillion but the election as well.



--
Dana Blankenhorn                http://www.danablankenhorn.com
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On 9/21/2008 10:39:55 AM, David Farber (dave () farber net) wrote:
> Begin forwarded message:
>
> From: "Dave Wilson"
> Date: September 21, 2008 9:52:04 AM EDT
> To: "David Farber"
> Subject: Good analysis of bailout
>
>
>
> I'm speaking solely for myself here...
>
> Paul Krugman, an economist who writes a column for the NYT, also  
writes a blog (how does this guy get his real work done? Actually,  
Dave, how do *you* get *your* real work done :-) ?)
>
> Anyway, Krugman has a very interesting analysis of th

--
Dana Blankenhorn                http://www.danablankenhorn.com
Voic.Us                 http://www.voic.us
ZDNet Open Source               http://blogs.zdnet.com/open-source
ZDNet HealthCare                http://healthcare.zdnet.com
Phone Number            404-373-7634






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