.D.C. To The U.S. Economy: Drop Dead
"Congress just fucked up. Big time.
No surprise, though. Congress could fuck up a wet dream.
Here's what's happening: Your average Congressman is a backslapping idiot. You don't make it to Congress understanding the machinations of the world of finance and credit. You make it to Congress by reading the will of the people and surfing that wave. The "bailout" package is unpopular with Americans because few Americans understand where a dollar comes from.
Phone lines have been lighting up with popular opposition to a Wall Street bailout from conservative and liberal populists alike. None of these yokels understand that even in good times, a dollar in deposits is perched precariously on an upside-down pyramid point of four to six cents in actual liquidable assets.
Fewer still understand that the reason their employer didn't send them home today is because the company they work at, or the city or state office they work at, is able to make their payroll because they are able to float commercial and high-grade short-term paper on the money markets for a 1-day to 90-day loan. That is why they have spending money now, and why they had it last week. Americans take it for granted that that is going to be the case next week. (If your employer doesn't borrow in the money markets, you can be assured that your customers do, or the employers of your customers do, somewhere upstream from you!)"
CounterColumn
No surprise, though. Congress could fuck up a wet dream.
Here's what's happening: Your average Congressman is a backslapping idiot. You don't make it to Congress understanding the machinations of the world of finance and credit. You make it to Congress by reading the will of the people and surfing that wave. The "bailout" package is unpopular with Americans because few Americans understand where a dollar comes from.
Phone lines have been lighting up with popular opposition to a Wall Street bailout from conservative and liberal populists alike. None of these yokels understand that even in good times, a dollar in deposits is perched precariously on an upside-down pyramid point of four to six cents in actual liquidable assets.
Fewer still understand that the reason their employer didn't send them home today is because the company they work at, or the city or state office they work at, is able to make their payroll because they are able to float commercial and high-grade short-term paper on the money markets for a 1-day to 90-day loan. That is why they have spending money now, and why they had it last week. Americans take it for granted that that is going to be the case next week. (If your employer doesn't borrow in the money markets, you can be assured that your customers do, or the employers of your customers do, somewhere upstream from you!)"
CounterColumn
posted by madtom at 8:53 PM
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