In a follow up to yesterdays post to “How the Crisis Started“, which highlighted an article from nine years ago pointing out exactly what could happen, and did, I found an article dated nine years from now explaining what happens over the next nine years. Yes, in October 2017, the article “Rescue Plan Sows Seeds of New Capitalism” explains, we are still in a great recession.
The economy is in shambles and a 1 percent growth rate is heralded as a great success for the U.S. It explains how the Bush administration signs off on a bill that freezes foreclosures and home prices. And the next to fail, will be the US Automakers, who of course the government must bail out as well.
“These illiquid assets are clogging up our nation’s highways, not to mention our environment,” Treasury Secretary Tim Geithner said six months after Paulson, his predecessor, declared the financial system in need of drain-cleaning.
The ban on short selling ends up being extended 48 times and pentalties are enacted for selling stocks within 5 years…a 50% capital gains tax.
“As I went to press, the Clinton administration (Hillary, not Bill), was working on an initiative to securitize Treasury notes and bonds to diffuse the risk. Unfortunately, so many years had passed since the financial panic of 2008, it was hard finding bankers with an expertise in financial engineering.
No related posts.
I like your blog, it usually has very interesting and insightful posts but…I have no idea what the hell this particular post is about.
Hillary’s administration? Short selling ban extended 48 times? 50% cap gains tax?
WTF?
The way we are going, in 9 years, our blessed country’s name will be changed from the USA to the USSA, the United Socialist States of America.
Jeremy, have a read through the link I was referring to here:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aprFfu1fpkGs
George, you are quite right.
Oh I read it. I’m just saying it’s bull and makes no sense. If I want to read fanciful fiction about impending socialistic doom I’ll pick up my old copy of Atlas Shrugged which is, BTW, more likely than the scenario in that link. Whatever.