Patent Law

Fools Errand

By Gary Odom and Jordan Kuhn

It is painful watching the new administration stupidly struggle with rebooting existing banks by buying their worst assets, the "bad bank" concept. The approach is fundamentally wrong. The government needs to buy/nationalize at least one nationwide bank, such as CitiGroup, which employees call "too big to fail, too shit to buy." A sovereign bank. Pump capital through that bank to revive lending. Let other banks fail as they may, in which case strategic ones are nationalized too, until liquidity once again flows through the financial system. It should be abundantly apparent that the financial health of this country is too important to be left at the mercy of greedy short-sightedness, to just buying dross. Moral hazard is what capitalism is supposed to be about, not handouts to the greedy rich.

Full post as published by The Patent Prospector on February 10, 2009 (boomark / email).