OPEC, Thanks for the Oil. Now Bail Us Out, Please
If our banks are running short of ready money, maybe we should just call the Organization of Petroleum Exporting Countries. In yesterday's Financial Times, business Prof. Anil Kashyap of the University of Chicago and economic Prof. Hyun Song Shin of Princeton University propose sending Condoleezza Rice to the Middle East to broker a deal where the region's sovereign wealth funds recapitalize our banking system. The pair of profs do acknowledge the sensitive political realities of such a move:
Finally, in case our proposal sounds unpalatable, it should be compared with the alternative in which the banking system deteriorates to the point where a public recapitalization becomes inevitable.
Tags: OPEC | economy | global economy
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Contemplating pursuing an economic bail out by OPEC
The idea is a plausible one to persue. Some one once said we don't get a free lunch. If it does transpire what are the consequencies? However, a resolution should start at home.
I am an advocate of the Keynesian theory by John Maynard Keynes, which states: Maintain high employment, control inflation by varying interest rates, tax rates, and pubic spending.
More specifically, it is public knowledge that the major Oil companies are experiencing record profits, even though the price of oil has continued to rise.
It is further understood that drilling for more oil requires an enormous effort in time and cost.
As a suggestion, and still maintain a profit, it is recommended that the CEO's, and stock holders divert some of that profit to the end users at the pump, to help the economy.
Also after further research, and the data becomes indisputable, I plan to send that data to Federal, state, and local to reconsider the use of ethynol derived from corn which is not as efficient as susgar cane, nor is it as efficient as gasoline.
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