Risk Rap

Rapping About a World at Risk

Lender of Last Resort

Now that the Federal Government has entered the commercial paper market and will serve as a lender of last resort to all types of corporations; we are a bit taken aback by the sweep and scope of power that EESA has conferred on our Treasury Department.

In the Federalist Papers, Publius is very clear about the need for Treasury to raise revenues through the power of taxation. Don’t see anything about going into the commercial lending business. I wonder how this will encourage the private sector to begin lending again?

Music Video: Dean Martin Three Coins in the Fountain

Risk: state monopoly, managed economy

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October 7, 2008 Posted by | credit crisis, EESA, pop, TARP | , , , | Leave a comment