The idea is simple. Since the Financial community wants government insurance they should pay for it. This solution arises because Hank Paulson peed his pants in third quarter 2008.
All things considered, the best way to stop financial self destruction is to keep short term interest rates higher. I am in the Hoover camp, there is no gain from deliberately distorting the banking channel, which the Fed is doing. Rather than a transaction tax, just have the Fed collect insurance in the form of more careful investing which higher interest rates cause.
If Congress worries that high interest rates harm consumers, then Congress should borrow less.
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