The painful but unavoidable reality of the financial crisis is that every dollar spent trying to prop up a failing bank is just good money thrown after bad; a taxpayer rip-off, short and sweet. Full Story »
Posted by Gregory Kruse
Well written. Holland's best argument is that the current schemes of giving out free money to rich welfare bankers is not working, and we have to get them off the dole. The core problem of falling real estate prices is identified, but stopping the slide is not guaranteed. The econometric effects of nationalization are not fully analyzed here. The effect upon all the people and institutions that hold the bad debt instruments besides banks is not laid out.
If real estate prices are to be stabilized, we need more people with jobs. Could we also subsidize starting new banks and credit unions and let the old criminal ones with bad loans fail?