Really new economic thinking from ...The Institute for New Economic Thinking aka Dog Turd Ideals

Boy O Boy do I get a kick out of reading economic dog shit.

I waded through this file of dog shit very slowly because one slip might be fatal. Please follow me slowly.

Some banks failed in 1929. Some survived, crippled but still operating. In 1933, President Roosevelt, by proclamation, shut all the banks for a week, the famous in infamous Bank Holiday of March 4 -12, 1933.

Roosevelt, President less than 48 hours, acted to save gold and silver reserves and some other minor things. But, crippled banks didn't have enough cash to repay deposits, lost most or all capital, and remaining assets had little market value. So here's what was done.

Bank assets were re-valued. Instead of current market value; and in 1933 bank 'assets' were pretty much vault doors, adding machines, buildings; we puffed up assets to 'historic values.'

Imagine it this way. You bought a car 6 years ago and paid $30,000 for it. Today, you can't sell it for $10,000. But,your government says don't worry. We'll wave our magic wand and Poof! Your car is worth $30,000 again. Now quick, sell it before anyone catches on to the magic!

That's how we saved banking back in the Depression. A change in accounting. Pretty much dog shit, eh?

But, in reading this story, the Institute for New Economic Thinking wants us to try this magic again. Here's the last paragraph of the article.

The result "was that we had a financial system that was fully cleansed of its rot and the stage was set for a period of comparative financial stability in the decades ahead."

Comparative financial stability ... In 1933, we turned balance sheets into smoke and mirrors. And, the New Economic Thinking, today's dog turd idea, we should do this again.

Why in the hell does anyone want to do this? Well, they must own some 'assets' at market values. And, they want to sell them. Really, really want to sell them. For a profit. To some rubes.

How's that for new economic thinking?