April 08, 2009

The 'Ol nothing up my sleeve gag...

Premise: We have an Economic Crisis The likes of which have not been seen since 1929

Liberal Answer To Problem: Spend Money By the Tractor Trailer Load, Borrow and spend as much money as possible. Raise Taxes on the Rich, take away the Bonuses of the wealthy, Nationalize Big Industries.

Conservative Answer to Problem: Stop spending money. Understand that the issue is primarily one of trust and accounting principles; therefore relax "mark to market" rules. Realize that people short selling derivitives and other securities in a "race to the bottom" further fueled the issue and reinstitute the "Uptick Rule" preventing traders from depressing the value of stocks by short selling. lower business taxes, lower capital gains taxes, allow big companies who are being run poorly and failing to do the same thing as small companies who are run poorly and are failing do...declare Bankruptcy.

What happened: Liberals did everything they wanted

Result thus far : At best the economy did not get worse, and worst, they accelerated the downturn

Meanwhile... behind the scenes this happened after the fact and in a very quiet and non reported way:

NORWALK, Connecticut (Reuters) - U.S. accounting rulemakers bowed to congressional and financial industry pressure on Thursday by allowing more flexibility in valuing toxic assets, a move expected to boost bank earnings and improve their capital levels. The five-member Financial Accounting Standards Board voted unanimously to let banks exercise more judgment in using mark-to-market accounting that has forced billions of dollars in writedowns and been blamed for worsening the recession.

March 12, 2009 · The federal government has been moving on many fronts to try to untangle the financial mess. The Securities and Exchange Commission said Wednesday it is considering reinstating something called the "uptick rule." It's aimed at helping the stock market. The rule helps prevent the plunge in a stock price caused by a rush of short sellers.

In a dramatic move, the Obama administration announced today that restructuring plans issued by General Motors and Chrysler are untenable, upping the likelihood of bankruptcy
among the Big Three and effectively launching one of the biggest instances of government intervention the recession has yet seen. "These companies and this industry must ultimately stand on their own, not as wards of the state," President Obama said this morning. "After careful analysis, we've decided that neither goes far enough."

It appears to me that there is a bit of a trend here. But I cannot seem to put my finger right on it....
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