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Posts Tagged ‘Neel Kashkari’

Today is Columbus day, a day that celebrates Columbus discovering America.  Perhaps it is ironic that over the weekend America discovered Europe when it comes to guidance in dealing with our financial crisis.  The answer to the crisis is not to have the Treasury purchase vast amounts of worthless securities from troubled banks but rather to invest in non-dilluting bank stock to help weakened banks re-capitalize.

Thus far it appears that Paulson is still lost at sea because he is advocating purchasing preferred shares, which if done, need to pay interest, be convertible to common and also non-dilluting.  Non-dilluting means that if top execs issue more shares and the govt takes a 25 percent stake, the govt gets 25 percent of all new shares.  Absent this the stock market will clearly plunge again due to becoming overcome with exhaustion at the abject incompetence of Treasury Secretary Paulson.

Secretary Paulson and Christopher Columbus

Secretary Paulson and Christopher Columbus

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