Thursday, January 08, 2009

Snap

Denninger:

JAIL the fraudsters, including those in Congress, Treasury and on Wall Street. Bluntly - if we can find a predicate felony to nail you with in this mess, off you go.
REMOVE all of the overseers. This includes The Fed. Set up a new agency that is charged with enforcing all of the laws related to the financial system including The Federal Reserve Act, and empower them with subpoenas. Direct that they must act and operate "in the sunshine", with everything published on The Web. You do an evil thing, the public sees it. They try to hide it, the public sees it.
DEFAULT all the bad debt. Yes, this "booms" a lot of banks. Tough.
SET UP new banks. Take the remaining $350 billion and capitalize ten banks with $35 billion each. IPO them to the public. By law no officer, current or former, of an existing public bank may serve on these firm's boards. Now we've got the means to replace the credit creation the boomed banks can't do any more.

Uncanny. We agree pretty much exactly. Either he's an amateur, or I'm a professional.

1 comment:

  1. A fond thought, indeed. Won't hold my breath waiting for it to happen.

    If Congress had just told Henry Paulson to take a hike, we'd be in a sharp and short recession, instead a long deep one.

    ReplyDelete

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