I realize many of you may have already read the article Stiglitz Criticizes Bad Bank Plan as Swapping 'Cash for Trash' but for those that have not I encourage you to do so. His comments were reported via Bloomberg from the economic summit in Davos Switzerland. I can only respond to the good professor's comments with 'Gee, ya think !!' I realize Professor Stiglitz is a Nobel prize winner in economics but this is not rocket science guys!
But alas we cannot all agree, as Professor Stiglitz caught some flack from one Angel Gurria head of the OECD, the Organization for Economic Cooperation & Development who said " a bad bank is necessary for lending to resume. "
And as if that was not enough we get another cerebral gem from Mr. Gurria .....
“ I agree about the moral, ethical fallout, but you’ve got to face the music and someone has to take the loss, ” said Gurria, Mexico’s former finance minister. “ It’s the only way to jumpstart the economy. ”
Why let ethics and morals get in the way of a good feast at the trough of taxpayer money right. Yes sir, someone indeed has to take the loss Mr. Gurria and being a loyal civil servant, in your universe that is everywhere and always the taxpayer. How about just once, the culprits responsible take the loss? God forbid that, right? I won't even get into the fact that the irony of a former Finance Minister of Mexico lecturing on financial advice, this is all too funny!
Mr. Gurria ,and the world economy as well, would be better served by the likes of Mr. Gurria just riding off into the sunset, enjoying their perks laden patronage appointments to the OECD's, World Bank and IMF's of the globe.
On further thought, forget that, no, let's have more summits and junkets at exotic and fantastic locales, all on the public dime, to get , sage, in depth economic advice on how to destroy functioning economies from the likes of the OECD, the IMF, and the World Bank. You just cannot make this stuff up.
As if this was not enough Philippines President Gloria Arroyo had this memorable quote from Davos, “We want Americans to do something,” she said at the session, which was called “Rebooting the Global Economy.” “We can discuss what to do but the worst thing is to do nothing.”
Please re-read Madame President Arroyo's last comment again. This fear of doing nothing is exactly why our problem will be much worse. I respectfully disagree Madame President as DOING NOTHING IS PRECISELY THE THING TO DO !!
Why you ask? Because doing 'something' everywhere and always leads to unintended consequences. Trade war anyone?
Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".
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