Monday, July 7, 2014

Run around the gym

Has a solid entry
His point we need a mechanism that puts bag systemically important firms out of existence
Once a state immortalizes a hi fi firm with an open ended credit line in self produced money
That firm can't kill itself no matter what it does
So the state has to kill it
And obviously the kill has to be careful and allow the harvesting of it's still vital organs
For transplantation
And if that is fruitless at least release the elemental productive factors for rapid absorption
into other firms
Including newly spawned. Baby GSEs
And other state as mid wife ops
This amounts to a new metabolic system
That has the potential for better dynamics then the private markets acting in there relatively
Groping and overly un co ordinated fashion
No this is not the libertarian paradigm now is it ?
But history has a sublation for capitalism never dreamed of in those lonely geeks philosophy
With potentially
Paine said in reply to Paine...
The innovation of the last epoch ending in September 08
Was the deeper securitization of the credit system and the wondrous complexity
of derivational synthetics
How this shakes out once we pass thru this testing ground oughta be fun to observe
The more completely inter connected our credit system the better
Despite the hazardous passages involved
On we go ready or not
to the higher organization of social production !
Paine said in reply to Paine...
As a veteran
gosplan II fancier
All this dazzled my head these past 25 years or so
Yearning for The mouse trap of yesterday year is nostalgia
The state is in the midst of the hi fi system to stay
Even when it backs off it only comes back in in a grander more intricate way
Vide the circle we traced these last 30 years
Paine said in reply to Paine...
Then of course we have the reactionary goo goo response
That thinks we can utilize the credit system in some straight forward retro way
And simply legislate an end to the uncertainty
Of spontaneous innovations of problematic social benefit
Fossilized finance.
That would be a virtue if all innovation in the credit system was destructive
That for example there really were no socially improving innovations beyond the ATM
The cult of self assured indignant bismark like reaction built around tall Paul
Is a delightful example of little lost lamb knee jerkism
"Come to me little ones... I'll protect you"
Crunch !