Recent actions by the Bush/Cheney Admin leave no doubt that they have adopted Robert Mugabe as their economic guru.
The taking of the equity of Bear Stearns along with a minimum of $30 billion in taxpayer money and distributing the proceeds to the sharedholders of JP Morgan would strike a familiar chord to many in Zimbabwe.
However, the latest announcement (on a Friday afternoon, no less, so it must be important) indicates that FED will waive those pesky capital requirments for JP Morgan (and only JP Morgan).
The FED in a letter FED loves JPM said that JP Morgan need not include hundreds of billions in assets when computing capital.
That's a little like getting a letter from your insurance company saying that they will ignore all your drunk driving and speeding tickets for the next 18 months.
Any gains from this FED action will accrue to JP Morgan shareholders. Any losses will go to the taxpayer. Shareholders at other banks will also be subsidizing the FED's love affair with JPM.
Robert Mugabe implemented similar policies (albeit over agricultural land and small factories) in Zimbabwe. The GOP, always the party of ideas, has readily adopted his ideas for the US economy.
Surely, a seat (if not the Chair) at the FED or the SEC awaits Mr.Mugabe. I understand that Phil Gramm has already agreed to have Mr. Mugabe assume the role of senior advisor to the John McCain.
We must all be grateful to those Amercans who twice voted for Bush/Cheney and to Antonin Scalia and Clarence Thomas for appointing them to office.