Efficient socialism? There is no such thing. Most economists don’t know this. Former bank regulator and economist, Prof. Lawrence J. White (not Lawrence H. White), who was a member of the Federal Home Loan Bank Board in the 1980s, speaking: “The government taking equity [makes sense], if it’s not going to close the place down — if it’s going to prop it up,” White says. Paulson’s bailout, which involves the government purchase of bad loans, is morphing into an even more socialist creature, which is outright takeover of banks via equity stakes. White thus supports Barney Frank’s idea. The Buffett … Continue reading Efficient socialism?