Saturday, October 11, 2008

The Time Is Now

Has anybody noticed that our credit markets need a little help?

When I got home last night Paulson was on TV adding to the litany of stuff he hasn't done yet the idea of the Feds buying preferred stock of troubled financials directly "as soon as possible".

Now would be a good time to do something. The only thing that had actually been done quickly to date was the stupid ban on short selling, which created a whole new set of imbalances.

The whole idea that we finally freed up $700 billion to move clunky debt out of the system then, as markets crashed worldwide, said that we'd get around to doing it in a few weeks because we have a significant need for oversight etc. is a joke.

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