you’ll laugh, you’ll cry, it’ll change your life

THERE IS NO UPSIDE

There is a lot of cry in the interventionist crowd about the terrors of privatizing gains and publicizing losses. Well no shit. If the government were good at making money it wouldn’t have taxes. The results of the government trying to absorb the profitable parts of troubled companies would result in the lowering of value of those assets. Individual gains across the board are supposed to be the goal.

Update: Yes, broad view, the costs are covered by everyone who owns us dollars. However, also broad view, I would rather reap the benefits of individuals spending more money than the government having more money to waste. You want stability? Nationalize the bankrupt banks. Hand out the profitable parts to other companies that have been responsible, and print dollars to pay off the “troubled” liabilities. Companies that behaved badly are disbanded, good assets retain their stability and mismanagement is not rewarded. Of course there is heavy inflation but then we’ve achieved “stability”. Seriously, I think uncertainty of government action is the biggest current modifier to the crisis.

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2 responses

  1. I didn’t understand this post. The idea of nationalizing the banks sounds almost as bad as what I’ll call the Fight Club solution.

    March 13, 2009 at 6:33 am

  2. dailynat

    I think the most important point is that you have all these people claiming to be pragmatic, then complaining that the government is only absorbing the negative aspects. If the government is going to do anything I would rather it absorb only the negative side, since the private sector would do a far better job of investing any gains than the government. This is what happens when I start posting things about how to make marginal gains rather than going the whole hog. I’ll try not to compromise in the future.

    March 13, 2009 at 3:14 pm

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