Tuesday, March 04, 2008

Eat what you cooked

Karl Denninger comments on the proposals to make banks write down some outstanding capital on loans, to secure what's left of the banking system. Painful, but it might save the day.

I wouldn't say it's impossible. America has more resilience and capacity to renew than its envious enemies wish to believe.

Good luck.

4 comments:

  1. AntiCitizenOne4 March 2008 at 23:31

    Wealth comes from people exchanging their time (comparative advantage).

    Whatever happens economically, that time never disappears. HOWEVER If confidence that the other party will reciprocate disapears then wealth will fall.

    Debt/credit is the availability/use of other peoples time in the future. When banks write down debt they free people to use their future productively.

    ReplyDelete
  2. Sackerson5 March 2008 at 05:52

    I wonder how radical we could get about debt?

    ReplyDelete
  3. James Higham5 March 2008 at 07:28

    For reasons you've now read, I think it will all go down in September.

    ReplyDelete
  4. Sackerson5 March 2008 at 08:32

    Post Olympics? Any connection?

    What happened in Russia after 1989? Didn't inflation savage pensions and State benefits? What happened to the pensioners?

    ReplyDelete

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