Wednesday, February 11, 2009

Put the Shrink in the Chair

There's a common protocal among therapists of which most people probably are aware if they watch the Sopranos. Therapists are all strongly encouraged to have therapists themselves, much like Eliot Kupferberg is to Jennifer Melfi in the Sopranos. The reason? Well sitting around listening to other people's problems all the time sucks, and you need to let it out. Also, it provides the therapist a little bit of perspective and alternative viewpoints to deal with patient problems.

The U.S., indirectly through financial institutions we have dominated for years like the IMF, dished out tons of paternalistic advice to developing countries about how they needed to make tough choices and deal with financial crises. In many cases the advice was brutally honest and led to very painful consequences.

Now, unfortunately, the U.S. needs to get in the patient's chair, and listen to this guy's brutal advice about what Timmy G. should have told Congress yesterday. Let the big banks fail. That's what we told the Japanese in the 1990's. We were right then, and we should follow that same advice today.

Think the president of the IMF isn't persuasive enough? Try the best financial columnist in the world Martin Wolf - he thinks the same thing.

Do as I say, not as I do?

Don't get me wrong - this "solution" would suck in the short-term. A lot. But it's also, as far as I see it, the best and only way really to get out of this.

Your thoughts and comments would be welcome on this one.

1 comment:

  1. Right on, Spicy Octopus. Although gov't meddling will still be in play...Can we effectively let banks fail while depositers' money is under the "protection" of Soprano Waste Management, er FDIC? One would think the Left would glom onto that...It's OK, the little guy will be protected. In fact, FDIC is ADVERTISING that...less than one day to your money! Hurry up and let 'em fail before 2010...Doesn't help commercially, but who cares about the greedy bloodsucking business executives, right?