Another terrific post from Warren Mosler's website.
| The Geithner plan is the latest move in what is shaping up to be the largest upward distribution of real wealth in US history. Its stated purpose is to provide high enough risk adjusted returns to attract ‘private capital’ at a time where risk perceptions are elevated. This means ‘market forces’ will offer ultra high returns for the investor class and the financial sector in general to attract the desired private sector participation. High unemployment will ensure real wages remain ‘well anchored’. This means that as productivity and output increases, those gains in real consumption necessarily flow upward. As the populist administration ironically moves to support investors and the financial sector at the expense of those working productively for a living. |
ahhh. 1988 or so. Neil Bush, the brother of GW, had a bank that went under to the tune of $2 or $3 billion and later was gobbled up by the "Bad" Bank which took up all the assets and sold them later at a profit for the "taxpayer" ...
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