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Sunday, December 27, 2009

Kill The Zombies

Why even bother nationalizing these zombie companies- unless you want to move deeper into a corporate/state economy ( fascism )? The time to walk away from bad investments is early, and our investments in banks and insurers are bad investments. We're propping up zombie companies that actually deplete economic energy even when they're quote unquote 'healthy'- all they do is repackage debt and resell it at a higher cost. Why are we saving them? Their contributions are negative in the best of times.

If government spending makes up a greater and greater share of your GDP, that's a signal that your economy is in decay. It's also a signal that our 'experiment with capitalism' has been in retreat for a long time. Government spending cannot drive the economy in anything other than a communist state. Government has no money of its own. Everything they spend is either borrowed ( using the people as collateral ) or collected through taxes.

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