(2008-02-01) Lewis Credit Crisis

Nathan Lewis on what to do about Credit Crisis 2008. We can put crisis-generating problems into three categories: High or Rising Taxes; Unstable Money; Other Problems... The solution to these problems is: Lower Taxes; Stable Money; Other Solutions. A corollary of this is that if you try to solve a tax problem with a monetary solution, or an other problem with a tax solution, the results will tend to be disappointing... If the present situation is not a High or Rising Taxes Problem or an Unstable Money Problem, then what is it? Well, if you're 11 years old and have been reading the New York Times, you probably know that the present crisis is one primarily of crappy debt, and debt-linked derivatives. So he says to recapitlize the banks (meaning partial government ownership, not a Bail-Out).

Now, what is really going to happen? ... disaster.