Sunday, January 18, 2009

The Don't Ask, Don't Sell plan!

The best description of these new plans came from Mish Shedlock who called it the Don't Ask, Don't Sell plan!

Don't Ask what the asset is worth.
Don't Sell or you will find out and not like the result.

British government officials were on Sunday putting the finishing touches to a new bank bail-out plan designed to end uncertainty about future losses and stimulate the flow of credit to consumers and companies.

The Treasury was on Sunday preparing to summon executives from Britain’s leading banks to discuss details of the package, which is expected to include a government-backed insurance scheme that will cap banks’ potential losses on risky loans they already hold on their balance sheets, encouraging them to step up new lending.

Peter Spencer said quantitative easing needed to be done now----In days because the banks didn't have weeks---otherwise we have a "depression."

The Government and the Bank of England have got "days not weeks" to take action to revive the economy or face a prolonged depression, one of the UK's leading economists has warned.

Peter Spencer, chief economic advisor to the Ernst & Young ITEM Club said that quantitative easing, whereby the Bank of England would print money to buy assets such as corporate bonds and consumer loans, was needed now.

"My concern is that people don't fully understand the dangers lurking out there. The Bank of England needs to move towards quantitative easing immediately – you don't have to wait until you get to zero per cent interest rates. If someone is choking to death you don't think twice about giving them an emergency tracheotomy. There may be dangers, yes, but the alternative is that they die," he said.

Expect the US to join them, before our banks get exposed with their trillion dollars of bad assets still on their books!

Washington was last night considering fresh plans to clean up the US banking system’s deteriorating situation.

In an attempt to restore confidence within the battered financial sector, the incoming Obama administration and the Federal Reserve are discussing a range of options, reported to include a government bank that would buy up toxic assets. Funded by taxpayers, the “bad bank” would buy the assets blocking the system and instead place the risk of holding them on the government.
How about restore solvency? Once again, it's the Don't Ask, Don't Tell plan.

Don't Ask what the asset is worth.
Don't Sell or you will find out and not like the result.


Anonymous said...

Chairman Ben S. Bernanke, We Are Opting Out of Credit.

All of Our Economic Problems Find They Root in the Existence of Credit.

Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?

They Bail Out, We Opt Out

The Credit Free, Free Market Economy

Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution.

I Propose, Hence, to Lead for You an Exit Out of Credit:

Let me outline for you my proposed strategy:

Preserve Your Belongings.

The Property Title: Opt Out of Credit.

The Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .

Asset Transfer: The Right Grant Operation.

A Specific Application of Employment Interest and Money.
[A Tract Intended For my Fellows Economists].

If Risk Free Interest Rates Are at 0.00% Doesn't That Mean That Credit is Worthless?

Since credit based currencies are managed by setting interest rates, on which all control has been lost, are they managed anymore?

We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.

In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.

The other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.

It will be either awfully deadly or dramatically long.

A price none of us can afford to pay.

“The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”

- Henry A. Kissinger

They Bail Out, Let's Opt Out!

If You Don't Opt Out Now, Then When?

Let me provide you with a link to my press release for my open letter to you:

Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can't Work!

I am, Mr Chairman, Yours Sincerely,

Shalom P. Hamou AKA 'MC Shalom'
Chief Economist - Master Conductor
1 7 7 6 - Annuit Cœptis
Tel: +972 54 441-7640

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