Pricing the Risk

It looks like the bailout funds will be mostly used to consolidate rather than pluralize the financial sector. Easily predictabe.

The economic model of efficiency being used is "bigger is better" which translated means "bigger is too big to fail" and receives public funding to consolidate and cause more crisis for more funding.

The current price on this risk is greater than $700 billion with a perfect probability of failure at 100 percent. I guesse we can't accuse our elits of not striving for perfection.

The bigger the firm, the more likely, if not certain, it will leverage risk for a magnified return, which caused the crisis we are now in. Banks will not be in the business of risking capital to grow the economy--lending to The People and their businesses--but to leverage a pure profit by bidding up futures contracts, straddling rate spreads and securitizing the risk into inscrutible value with bogus marks to the market.

The bureaucratic managers to discharge the TARP are sector executives that are likely to price the risk based on returns for the private sector and the consolidation of market share, recycling crisis with the legitimacy of public authority.

Instead of better products, services and prices, the consumer is financing an organization inimical to its interests.

Instead of financing a competitive multiplicity of the marketplace in which risk is priced in terms of the best value for the customer (The People), the risk is priced to shift it all it to The People with the least possible benefit and the greatest gain for the private corporate entity, thereby securing exploitation of The People, the perfect probability for crisis, and the public funding that it causes, all with the legitimacy of public authority which is defined by the consent of the governed.

The risk is priced out of the market and into the public domain so that the accountability is all with a bogus consent of the governed. The risk is priced by dumpimg all the cost into the public domain. The result will be crisis and the need to service the inefficieny of "bigger is better" with public finance, always being supported as the confirmed model of efficiency with the empirical verification of the huge amount of public money spent to bail it out, and preserve it, by popular consent.

The People's capital needs to invest a deconsolidation of industry and markets, not pay for the organized means for The People's deprivation.

Obama/Biden 2008!