"The Action Plan"

This is what the Treasury calls its plan to "infuse" the banking system with capital.

Infusion means that the capital lost and sitting idled on the sidelines, causing the liquidity crisis, is free and clear from possible recapitalization. That is a critical mistake!

The plan calls for buying non-voting shares of the banks rather than just buying worthless assets (the bad debt) which would be to subsidize the gain (the profits from the leverages) by removing the loss from their balance sheets and shifting this well-known risk (the loss) to the taxpayer.

While the markets tended to respond favorably to the plan, having at least a semblance of the needed recapitalization from the zero-sum gain (which would be to recapitulate the gain that is a loss that has caused the economic crisis), it is not enough to cause a reliquidation with the consolidated, frozen, liquidity. No, the capital consolidated and withheld to deprive our economy of the needed liquidity is being held out for terms that are favorable to preservation of that gain without compromising the zero-sum (a loss to the consolidated capital). It is significant that the shares will not be voting shares with the possibility of directing capital investment that pluralizes the marketplace.

If it is not a zero-sum game, the monopoly game in which the other players are at a loss to the winner's gain and subjected to his power, then, for the capitalist, it is not a game worth playing. He will just take his marbles and go home, which means approaching full-blown depression.

That won't happen because the stakes are too high: entire recapitulation of the capital. That could mean not only a recapitalization of the gain, but a switch in bureaucratic legitimacy for operation of the state to the organization of state socialism, antithetical to the state capitalism being afforded our current crisis.

When the practical alternative is proposed to recapitalize from the gain toward pluralizing the marketplace so that its participants are never dependent on any one, or collusive collective, of the market's suppliers (the source of consolidated capital's power), the free marketeer is characteristically dismissed as a utopian socialist just wishing for that perfect model of practical impossibility that is, ironically, largely the Jeffersonian ideal of limited need for government. Not just the absence of government, like the lack of regulation that contributed to our current economic crisis, but the NEED for it.

It is a fool's task to eliminate the operation of government without first eliminating the need!

So, what is the capitalist that discredits the operation of a deconsolidated capital, industry and markets, and the operation of government doing for us? Deflating the economy, holding us hostage to accumulated value we produce, organized to be used against us, causing crisis and deprivation, and the need for government.

Depriving The People of the full value they produce to make them dependent on the capitalist's riches hardly instills confidence in any solution to the crisis he may come up with.

Let's try investing a free and unconsolidated marketplace for a change. If it tends to consolidate because of the activities of a greedy few that do not want to be accountable to the processes of the collective will, to The People, adjust for the externality with deconsolidation in priority with the force and legitimacy of public authority. The capitalist, then, becomes the marketeer of freedom with the incentive to maximize supply to maximize profit, which is disinflationary (making life affordable for EVERYONE), instead of minimizing it for a profit (leverage finance) causing inflation, unemployment and the deflationary crisis we are in now (making life affordable for only a precious few that is the zero-sum gain from the zero-sum loss of The People).

Yes, we can have change.

It can be effective, and we can have it now!

Wishing us all the very best.