Monday, October 4, 2010

James Grant: Let's Plan for the Death of the Federal Reserve

Yes, let's!

Below is a clip posted at Zero Hedge (10/01 2010).

It's a James Grant interview on Bloomberg TV, discussing how to manage the dissolution of the ultimate TBTF (too big to fail) bad bank, the Federal Reserve. His suggestions include:

  • Appoint Ron Paul as the executor;
  • Outsource $2.2 trillion portfolio management to competent private hands;
  • Central economic planning to be undone by the executor.
His other points:
  • Banks having to draw up plans for their own demise - it has nothing to do with reality.
  • We have been on the road to socialization of credit for many decades, and we're kind of there now.
  • Taxpayers will bail out again these insolvent banks.
  • Regulators are more risk-averse, more backward-looking.
  • One of the America's great strength is, has been, the capacity to deal with failure; almost any society can deal with successes. Ability to confront error, admit it, and to reprice it, and then to try the next thing, try to form a business in the face of error, in the face of his own failings.
(True! Just look at Silicon Valley...)

Don't let them - the White House, the government, court historians and economists and MSM, anyone - make you cower in fear or resignation.


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