Rational Advisor

Let me take you back to some comments from the BUSH TV (or should we call it MADTV)

- The Nations is in dire trouble, if we do not act
- We have some serious problems
- This will affect us all
- We need to implement this plan as soon as possible
- Our specialists have done the research and told us that it is nto good.
- You can trust in us

Uhmmm… that was in September 2002 (the last time Bush came up and asked for such large funding) and the issue then was Saddam and the WMD’s that they had research on.

The world and the US people believed Bush then, that if they did not act, the bombs would fly right into their own homes. The story told to the world was terrible.

They went forward and got the money to implement their plans, and the follow through was sheer misery, for the Iraqi people, for the US people, for the world, for global economics

And now we get the same show, but it’s related to the Financial crisis - these WMD’s called mortgages!

I believe that even though this $700B will get through - it is a similar thing. Their research is not upto scratch - let companies that did wrong fail - let economic darwinism work - strong shall inherit over the meek. In this case the JP Morgans, goldman Sachs, RBC’s, TD’s and Wells Fargos shall inherit and swallow over the Lehman’s, WaMu’s etc.

I believe the long tun implications for $700B of extra liquidity, is artificial

I repeat Milton Friedmans’s quote. “Whenever their is a government solution to a problem, the solution is usually worse”

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