Posted by Tim Stobbs on September 25, 2008
Alright the US is looking at the mother of all bailouts to the tune of $700 billion dollars. They have even hinted at 1929 style crash and depression to follow if they don’t offer this bailout package and stiff the US taxpayer with the bill for the next 50 years or so.
Is it me or is this all strangely sounding like the famous ‘weapons of mass destruction’ wild goose chase? We take something bad and pump it up to something ‘terrible’ and then get the public support to do something stupid and leave people paying for it for decades to come. The trick is to get it passed fast so people can’t read the fine print and realize what is going on.
They keep saying it will wipe out lots of investors. The really good question is which ones? How much money will the average people lose? After all in the lovely capitalist society isn’t most of the wealth concentrated at the top. Who is really going to get hurt badly? Perhaps a couple 100,000 people out of millions?
If the US is really all about free market, they should let it correct itself. Afterall the market has been trying since 9/11 to correct itself downwards. Will it hurt going down? Yes, but think of it this way. All they are really going to do is take a large hit now and spread it out over a number of years with interest. So what do you want to pay $5000 now or $100/month for the next five years? Either way someone has to pay to clean up this mess.
So what’s your thoughts on the big bailout? Needed or hot air?