Sunday, March 22, 2009

Proposal to solve the global crisis

Here is my proposal to solve the global crisis. I hope that the US government will be considering an approach along a similar line. The strategy is to stabilise housing prices at replacement cost, less depreciation.
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4 comments:

ym said...

hi Mr Tan,..
I dont agree with the proposal...

Mark to market is not the root cause of the economic problems..

below are 2 very good articles abt how the economy works and the counterfeiting effects of fractional reserve banking..

the important thing is how production is funded and how fractional-reserve credit robs the economy...

how the economy funds production :
http://mises.org/story/1596

fractional-reserve destroys economic wealth :
http://mises.org/story/3151

I hope you and your readers will take time to study it carefully..


ym
mises.org

March 22, 2009 10:03 PM
ArtBoon said...

Free market proponents like myself will say "let the speculators die", don't mark to market.

However, if we consider the need for political stability, then using public money to absorb supply from desperate sellers is one way.

The question will always be, how much is enough? Who gets to sell first?

March 23, 2009 8:55 AM
[cz] said...

well, cost base and mark to market got its pros and cons. and there is always a trade off between reliability and relevance.

so i guess it depends on which is more important. you want a reliable figure? or a more relevant one? but it seems that the general accounting standards are moving towards the latter directions.

March 23, 2009 11:04 PM
Anonymous said...

sounds too socialist which restricts capitalism to a certain extent, thus affecting free trade.

September 18, 2009 4:32 AM

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