http://www.crikey.com.au/2008/09/25/steve-keen-paulsons-plan-is-like-bailing-the-titanic-with-a-thimble/ now with extra source Sun, 12 Feb 2012 11:47:26 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2008/09/25/steve-keen-paulsons-plan-is-like-bailing-the-titanic-with-a-thimble/#comment-9575 Kevin Cox Thu, 01 Jan 1970 10:00:00 +0000 #comment-9575 Steve how do you suggest they unwind the debt? Steve how do you suggest they unwind the debt?

]]> http://www.crikey.com.au/2008/09/25/steve-keen-paulsons-plan-is-like-bailing-the-titanic-with-a-thimble/#comment-9576 Ben Aveling Thu, 01 Jan 1970 10:00:00 +0000 #comment-9576 I tend to suspect that Paulson is right when he says that if the plan isn't approved, bad things will happen. I also tend to suspect that if the plan is approved, pretty much the same bad things will happen anyway. Please tell me I'm wrong. I tend to suspect that Paulson is right when he says that if the plan isn’t approved, bad things will happen. I also tend to suspect that if the plan is approved, pretty much the same bad things will happen anyway. Please tell me I’m wrong.

]]> http://www.crikey.com.au/2008/09/25/steve-keen-paulsons-plan-is-like-bailing-the-titanic-with-a-thimble/#comment-9577 Shylock Thu, 01 Jan 1970 10:00:00 +0000 #comment-9577 There are only two ways to unwind the debt. Pay it down slowly from savings is the first. The second is write it off as bad and sell what you can of the collateral for whatever the market will pay. Firesales will end the downward cycle and begin the next upward cycle. Government ownership of bad debt will cause a 10 year deflation like Japan experienced in the 1990s. The US Government should raise taxes especially on the rich and close down its foreign wars. The US dollar has to be sold off and foreign trade conducted in an assortment of major currencies. There are only two ways to unwind the debt. Pay it down slowly from savings is the first. The second is write it off as bad and sell what you can of the collateral for whatever the market will pay. Firesales will end the downward cycle and begin the next upward cycle. Government ownership of bad debt will cause a 10 year deflation like Japan experienced in the 1990s. The US Government should raise taxes especially on the rich and close down its foreign wars. The US dollar has to be sold off and foreign trade conducted in an assortment of major currencies.

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