Posted by
m0t0r1zed on Thursday, November 20, 2008 6:27:05 AM
get in get out
ideally, that would be the best thing to do for gov't in these interventions. gov't may have stabilized the credit situation, but its continuing presence will have a disruptive influence on behavior. institutions may hold off on major decisions because they are all waiting to see how gov't will act, legislate, regulate, boondoggle, etc.
gov't needs to hand off what it's doing back to the private sector - such as purchasing commercial paper - as fast as possible. gov't needs to get in and get the heck out.
when you have a murky pool of water, by leaving it alone, it will become clear on its own. the more you agitate the water, the murkier it gets, and right now, gov't intervention is agitating the water and making murky the economic situation.
gov't has to be decisive and clear in its pronouncements and discussions of future plans. it can't hedge or mumble or shuffle its feet or leave options open in the future. all that will do is stir up more mud.
a congressmen mentioned an "exit strategy" for gov't intervention - a VERY important idea. list the plan and current actions being taken 1, 2, 3 as clearly as possible. there should be a time horizon for when you will expect to terminate these programs, and how you will pass off these responsibilities back to the private sector when they are ready to stand up on their own against the insurgency.
if banks still aren't lending, then so be it. just be done with it and move on. you can't wait for them while they wait for you.
a large scale plan to stimulate jobs and the economy will probably then be the next step. it could be that banks and investors are waiting for the details of just such a plan so that they know where to place their bets, uh, i mean investments. unless bush and obama agree upon a plan, the economy will be in limbo for the next month and a half. woohoo! everybody do the limbo!
also, i give up on gm, etc. congress cannot execute complicated maneuvers. heck, they can't even go from point a to point b. so just let the autos fail or just give them $50 billion, no strings attached, and tell them to go away for two years. if they live, they live. if they die, they die. if congress wants to drive us deeper into recession, fine. let them do it sooner, so that we can get it over with. =P
the worst thing right now is for gov't to linger in areas where it's not supposed to be. be decisive. do it, be done with it, and move on.