Sunday, September 21, 2008

Pick Your Dictators Wisely

TW: We are in some deep doo doo economically. So deep that dictatorial powers are likely to be extended with bi-partisan support. I am not qualified to judge the actions (who is?) and therefore not qualified to suggest alternatives. But the US financial markets will be ruled with dictatorial powers for some period of time (and I suspect it will be longer than one thinks). All I will say is that there are benevolent dictators and malevolent dictators; competent dictators and incompetent dictators. Lets hope for the benevolent and competent. Obviously the Bush Administration assuming additional radical powers is disconcerting, despite my respect for Paulson. But the next President will inherit not only this mess but these powers. Keep that in mind when you vote.

Sept. 21 (Bloomberg) -- The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.
Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world's largest economy to a standstill. The bill would prevent courts from reviewing actions taken under its authority.
``He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. ``He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.''

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