Comments (10)

• Jeffrey Tucker

  wow, that is a fantastic interview. I really hope that everyone listens to this. Send it around!

  Published: September 27, 2008 12:19 PM

• Kevin

  It seems that none of these talking heads can conceive of a world outside of fractional reserve banking.

  Published: September 27, 2008 1:47 PM

• Chuck

  Thanks for this info. I'm putting it on my blog and telling everyone I know.

  Published: September 27, 2008 2:47 PM

• Deborah Greene

  The mere fact that the Senate and Congress would even entertain this proposal from President Bush and Sec. Paulson is beyond my understanding. They have sent a plan that they can't guarantee that will fix a financial crisis that many financial experts and banks say doesn't exists. And, it is a plan that looks like it is all about grabbing power versus fixing the economy. The Congress had the guts to stand up and say NO. No to President Bush, Sec. Paulson and the Senate leaders, many of who are the problem, not the solution. The members of Congress that still have any ounce of constitutional morality and common sense should call a press conference, meet on the Capitol steps and set that proposal on fire. BURN BABY BURN! No Bailout!

  Published: September 27, 2008 5:19 PM

• Curt Howland

  http://www.youtube.com/watch?v=zP7ZvzDqaTM

  For folks for whom LiveVideo doesn't work.

  Published: September 27, 2008 5:53 PM

• Dugan Dugan

  His views are completely flawed. First, he doesn't address the fact that without freeing up capital for institutions to lend, more companies will be unable to borrow, thus weakening the economy further and increasing downward pressure on home prices. Second, most institutions currently in trouble have already cut or suspended dividends; however, some of them that continue to distribute dividends are not the ones with the liquidity problems, but rather the ones that are buying up the most distressed companies. Third, just because the previous moves by the fed and Secretary Paulson haven't completely solved the problem, doesn't mean they should no longer try and help with problem.

  Published: September 27, 2008 9:05 PM

• newson

  dugan dugan says:
  "Third, just because the previous moves by the fed and Secretary Paulson haven't completely solved the problem, doesn't mean they should no longer try and help with problem."

  at what point would you say this becomes throwing good money after bad? japan post-bubble should serve as a warning to interventionists.
  

  Published: September 27, 2008 9:50 PM

• banker

  Credit does not give people additional spending power. You can only spend either someone else's income (bail out, default loan, etc) or your own (savings, living within your means). All credit does is postpone the point when you have to pay the bill, that's it. When people finally learn that, then they will understand what finally has to happen for things to get better.

  Published: September 28, 2008 5:41 AM

• belle

  Is Peter Boockvar channeling Ron Paul? How refreshing to hear someone who understands economics and tells it straight and honest. We need to hear more voices like his.

  Published: September 28, 2008 8:56 AM

• Keith

  Quote from Dugan Dugan: "First, he doesn't address the fact that without freeing up capital for institutions to lend, more companies will be unable to borrow, thus weakening the economy further and increasing downward pressure on home prices."

  But you're not "freeing up capital". You're simply printing money, which will increase inflation and drop the prices of homes, and everything else, anyway.

  Quote from Dugan Dugan: "Second, most institutions currently in trouble have already cut or suspended dividends; however, some of them that continue to distribute dividends are not the ones with the liquidity problems, but rather the ones that are buying up the most distressed companies."

  And this is how the market works. The loosers get bought out by the winners. Maybe those companies that are buying the troubled companies realize that their assets are not valueless, but simply over valued now and when bought at lower prices they will be a good investment over time.

  Quote from Dugan Dugan: "Third, just because the previous moves by the fed and Secretary Paulson haven't completely solved the problem, doesn't mean they should no longer try and help with problem."

  But they haven't simply not solved the problem. They haven't done anything to help the problem. In fact they're making the problem worse. At some point you have to recognize that it isn't working no matter how many times you try.
  

  Published: September 29, 2008 8:44 AM