Ratigan & Nassim Taleb On The Idiocy Of Cash For Clunkers And Generational Theft
As usual with Dylan Ratigan, the cash for clunkers debate evolves quickly into an outstanding discussion of the banks, generational theft, too big to fail, financial regulation and the Wall Street bailouts. Larry Summers is nicely flailed along with Geithner and Bernanke. Taleb criticizes Obama specifically and forcefully, and admits publicly to his own Libertarian leanings.
The central question is how do we create programs that help the economy without rewarding bad behavior. In a familiar refrain, Taleb counters that the core economic problem is too much debt, and absolutely nothing has happened to ameliorate the problem. Bravo.
Farzad correctly points out that the problem is ultimately political. Finally. As I've been screaming about since the day of our launch, both parties are too concerned with the next election to make the right choices about the economy and our 3-decade build-up of debt.
This is an outstanding discussion that I've been saving since its broadcast 10 days ago. If you're pressed for time, begin watching at the 3-minute mark. Endeavor to see this one.
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http://www.nydailynews.com/money/2009/08/17/2009-08-17_cold_cash_beats_hot_sex__poll_majority_of_women_would_rather_have_50.html
Amounts Tapped by Agency Reminiscent of Savings-and-Loan Crisis
http://online.wsj.com/article/SB125046283572235251.html
China Investment Corp. (CIC) plans to invest soon in U.S. taxpayer subsidized investment funds of toxic mortgage-backed securities, which it sees as a safer bet than buying into the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF).
Under the Public-Private Investment Plan (PPIP) launched earlier this year, the U.S. government plans to seed a number of public-private investment funds that would combine taxpayer money with private capital to buy as much as $40 billion in toxic securities from banks.
http://money.cnn.com/2009/08/17/news/economy/cic_mortgages.reut/index.htm?section=money_news_economy
Why is it so hard to get the idiots away from the buttons and switches in our economy?
Appropriately, this is precisely the moment at which Chuck Todd disappears. (BTW, has the wedgie been renamed the "Chuck Todd" yet? Or even better, an over-the-head wedgie is apparently called a "covered wagon," which could easily be rechristened the "Chuckwagon.")