I am going to address this in my next column, but banks are already insolvent. The Fed is trying to recapitalize them by letting them play the yield curve. Raising rates will flatten the curve and remove that subsidy.

I think these impaired assets are permanently impaired. It's not about saving the assets as much as letting the banks build their capital back up so they can take the writedowns (which is now being delayed thanks to compliant regulators).

The main point here is social: Many people made bad decisions and should now be looking for new jobs where they can actually be productive. Maybe doing something worthwhile like panning for gold or massaging ferrets.

The reason why we're not going to get good job growth is because they will be protected in their unproductive endeavors. New jobs, new kinds of activity will not come into existence. Years of big government and dimestore democracy have made people think Washington can solve their problems. But as Franklin said, "those who sacrifice liberty for security deserve neither." Replace the word "security" with "prosperity," and it tells the story. We don't need Washington as a wet nurse. We need them to stop taking our money and freedom so we can prosper as Americans.