Comments on TARP

Maybe a few of these will show up, too.
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Posted by John_R at February 22, 2009 02:02 PM

Brian, thanks for that. It's almost the perfect metaphor. The only problem I have with it is that it only goes up to TARP 3.

The big question is what happens next?


Posted by Kevin B at February 22, 2009 03:27 PM

Great song; thanks for the link.


Posted by Laird at February 22, 2009 06:26 PM

It is a perfect metaphor for TARP, and it goes deep.

Hauling heavy things into the air is serious work. You would think that the crane operators would do a little math to see if the crane is up to it. Maybe, figure out a way to tell if the load is too big, ahead of the experiment of seeing the whole crane go over.

They looked into the water and saw the first crane. This didn't prompt them to get someone who actually knew something, to do those calculations, take precautions, and brace the second crane.

Actually, they did a pretty good job by government standards. The government puts about 10 cranes into the water, then declares that spot to be a crane graveyard. All the while, their policy makers say that it shouldn't have happened, it doesn't fit the model they are using.


Posted by Andrew_M_Garland at February 22, 2009 09:51 PM

I'm not sure it's a "pretty good job" by anyone's standards, even the government's. One would think that a crane operator would have enough sense not to have the crade placed sideways. And even if the first operator didn't, surely someone would have mentioned to the second operator what happened to the first, and he could have figured it out.

And, of course, he should also have figured out that they should detach the car from the first crane before starting the operation.

All in all, I think that everyone involved in this operation (starting with the driver of the automobile) is holding down the bottom end of the intelligence curve quite nicely.


Posted by Laird at February 23, 2009 12:40 AM

The crane thing was Snoped some time ago. The first crane fell into the water, the second one didn't: it's been photoshopped.


Posted by Tim Newman at February 23, 2009 03:19 AM

Well, that's disappointing. An excellent job of photoshopping, though.

And it's still a great TARP metaphor!


Posted by Laird at February 23, 2009 05:21 AM

I am thinking of signing up for cryonic suspension. Give it a few 100 years in the cooler, get revived with a nice new body and by then the debt might have been paid off.


Posted by Johnathan Pearce at February 23, 2009 08:35 AM

Jonathan- either that, or sometime around the fourth or fifth "bailout" you'd have been decanted, thawed, and served up for supper by the roving mobs.


Posted by Doug Jones at February 23, 2009 07:09 PM

Agreed Brian (and Mr Jennings and others) the "rescue" efforts have (each time) made a bad situation worse.

I am remined of the activities of the lady who had a fly go down her throat.

First the lady put a spider down her throat to catch the fly, then the lady put a bird down her throat to catch the spider, then the lady put a cat down her throat to catch the bird.

At some point in this process the lady would, of course, die.

Having major banks go bankrupt is very nasty (although it was caused by an increase in the money supply setting up a credit bubble - an increase in the money supply generated by GOVERNMENTS and only then magnified by fractional reserve activities) and yes many companies linked to the banks (including good companies) would be "dragged down" by their collapse.

But it is the "cure" for this crises that will kill the economies of the West.

Remember even the increase in the money supply was not a one off process.

There were a serious of stages.

Each time the increase in the money supply caused malinvestments (distortions in the capital structure) and each time the bubble looked like it was going to burst.

But then "Alan Greenspan saved the world" by expanding the money supply again in a "rescue mission" (and the other Central Bankers of the various countries followed him - via the "international cooperation" of the sucide pact).

And each time, of course, the credit bubble got bigger.

In the end the bubble burst - when it was a truly vast size.

Even then that would not have destoyed the financial basis of the West - even in the United States I doubt that more than a few big banks (out of hundreds of banks) would have actually gone bankrupt.

It is the insane "cure" for the financial crises (under Bush and Obama - and Brown and .....) that has destroyed the financial basis of so much of the world.


Posted by Paul Marks at February 23, 2009 10:03 PM
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