Financial Crisis
On Nationalization
Lawrence A. Hunter, Ph.D.
March 9, 2009
If Starbucks went into bankruptcy would we say it had been "nationalized?" No, we wouldn't; we would say it went bankrupt. Would we find the bankruptcy proceedings an unwarranted government intervention? Only the purest of pure anarchists would. Read More...
On Toxic Assets
Lawrence A. Hunter
March 9, 2009
The argument over mark-to-market disguises the real debate, which is whether or not to extend forbearance to banks deemed “too big to fail” due to the “systemic risk” they pose for the system. Those favoring forbearance ASSUME the whole asset is really worth the sum of the asset's component parts but for some reason the market cannot ACCURATELY access that TRUE (whole = sum of parts) value right now; Houston, we have a TEMPORARY problem; however, not to worry, the anti-MTM reasoning continues, whatever impediment is currently confusing the market will sometime in the (near?) future go away and the market value of the whole asset will then once again rise to equal the value of the sum of its parts. Read More...
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Urgent Petition
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Sign the petition to stop Social Security Cuts and send a fax to every Member of Congress demanding they cut other spending, NOT SOCIAL SECURITY.
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