Friday, October 3, 2008

Economy and Bailout Update

I saw a few things that I wanted to make sure the Burgh wasn't missing.
  • First, Warren Buffet has an interesting idea about how to better use the $700B. In general, instead of having the government directly buy securities, they would instead lend money to Hedge Funds and other organizations at ridiculous rates so that THEY could buy up the securities. The advantage would be that rather then an obtrusive bureaucracy (the Treasury Department) owning the securities and having to actively manage them, smaller, more agile companies would manage them. Hopefully, more profitability. It's an interesting idea, though I don't expect it to get much more traction then this article.
  • Second, I wanted to point something out about why the house will likely pass essentially the same bill that they voted down on Monday. One of the main reasons is the most demonized word on Capitol Hill, "Pork." That's right, when you have a bill that won't pass you add amendments that representatives who are on the fence can't refuse, amendments such as these.

1 comment:

Judge Rufus Peckham said...

I would be inclined to take anything Warren Buffet says seriously. Although I do believe that some people are just "lucky," nobody is Warren Buffet-lukcy. He knows what he's doing.

And the notion that this important bill required pork to appease some naysayers tells us much about American politics. Americans disagree with the concept of pork - until they are on the receiving end.