Comments on: The $ 8 Trillion Dollar Bailout http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/ I believe in the free speech that liberals used to believe in, the economic freedom that conservatives used to believe in, and the personal freedom that America used to believe in. Sat, 20 Mar 2010 05:11:37 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Wow a Bailout, a bad idea, Who Knew?? ;k) « Mattlb2000’s Weblog http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/comment-page-1/#comment-278018 Wow a Bailout, a bad idea, Who Knew?? ;k) « Mattlb2000’s Weblog Wed, 07 Jan 2009 07:41:45 +0000 http://belowthebeltway.com/?p=12304#comment-278018 [...] http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/ [...] [...] http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/ [...]

]]> By: Michelle http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/comment-page-1/#comment-277606 Michelle Mon, 05 Jan 2009 03:46:03 +0000 http://belowthebeltway.com/?p=12304#comment-277606 Bring back the Glass/Steagall Act of 1934 that was over turned by Phil Gram in the Gramm/Leahy/Bliley Act. Repeal the Commodities Modernization Act that allowed derivatives to be deregulated. The exit from the first Great Depression was to devalue the dollar in relation to gold. Somehow they're going to have to devalue the dollar or even come up with a new currency. Bring back the Glass/Steagall Act of 1934 that was over turned by Phil Gram in the Gramm/Leahy/Bliley Act. Repeal the Commodities Modernization Act that allowed derivatives to be deregulated.

The exit from the first Great Depression was to devalue the dollar in relation to gold. Somehow they’re going to have to devalue the dollar or even come up with a new currency.

]]> By: Bradley Smith http://belowthebeltway.com/2008/12/03/the-8-trillion-dollar-bailout/comment-page-1/#comment-261822 Bradley Smith Wed, 03 Dec 2008 13:53:18 +0000 http://belowthebeltway.com/?p=12304#comment-261822 This is just a really difficult problem to solve (duh). The problem is that no one really knows how to solve asset deflation. The only logical way is just to let markets brutally discount until the point that people will buy no matter what. This leads to the leverage problem, which is the reason our balance sheet is exploding. However, any sane person with a novice financial background knows you can't irrigate the system with that much fiat money without inflating the currency. The UST really is playing Russian roulette here. There's got to be 1.) a cohesive strategy to keep all these transactions sterile that will make 2.) an exit strategy to mop up all the excess liquidity feasible before confidence completely erodes and we see a run on the dollar. That's the Armageddon scenario :P This is just a really difficult problem to solve (duh). The problem is that no one really knows how to solve asset deflation. The only logical way is just to let markets brutally discount until the point that people will buy no matter what. This leads to the leverage problem, which is the reason our balance sheet is exploding. However, any sane person with a novice financial background knows you can’t irrigate the system with that much fiat money without inflating the currency. The UST really is playing Russian roulette here. There’s got to be 1.) a cohesive strategy to keep all these transactions sterile that will make 2.) an exit strategy to mop up all the excess liquidity feasible before confidence completely erodes and we see a run on the dollar.

That’s the Armageddon scenario :P

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