September 21, 2008

Here’s the Circus, Where’s the Bread?

Filed under: Uncategorized — duncan @ 6:02 am

The Plan in Full

“The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time”

“Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection” [$8,184,000,000,000] “and inserting in lieu thereof $11,315,000,000,000.”

“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency”


  1. Mr. Praxis, the Treasury plan is pretty sweet, isn’t it? It should be called the Re-Feudalization Act of 2008.

    What is funny, of course, is that the “liquidity” problem is disconnected from the liquidity of the real economy, the companies that make goods and services, as they haven’t had any especially pressing need to borrow for their operations or their R and D – although of course the toxic mergers the CEOS love to play with are down.

    Although I’m no great fan of Robert Reich, his suggestions about the bill – which, I’m afraid, is going to pass through the utterly corrupt U.S. Congress – are good:

    Comment by roger — September 21, 2008 @ 6:54 pm

  2. Roger, yes indeed, disaster disaster disaster.

    The Reich article is good if we assume the fait accompli of some such calamity, and also assume (ridiculously) that Congress will have the strength and/or desire to try to mitigate the nightmare. The real problem is that any suggestions of this kind will be purely reactive. It’s at moments like this – when it’s obvious to any and everyone that the system must change -… it’s at moments like this that non-mainstream policy proposals are able to seize the stage. But because the left has spent the last few decades… well… falling apart… there’s no elaborated alternative to activate. There are no figures like Keynes (or, indeed, Friedman), sitting around, waiting for their moment. So the theft gets perpetrated without even a justification, because you’re not going to be able to propose an elaborate reformist transformation of capitalism, in a week or so, from a standing start.

    ‘“If we design it so it’s punitive and so institutions aren’t going to participate, this won’t work the way we need it to work,” Mr. Paulson said on “Fox News Sunday.” “Let’s talk about executive salaries. There have been excesses there. I agree with the American people. Pay should be for performance, not for failure.”

    But he quickly added: “But we need this system to work, and so we — the reforms need to come afterwards.”’

    Doesn’t feel very helpful to say… ‘Well next time we’ll be ready…’

    Comment by praxisblog — September 23, 2008 @ 4:45 am

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