Sunday, October 05, 2008


Unfortunately, I don't have much time to talk about the $800B bailout B.S. As most of you know, I was very much against this measure. I've talked to a few who believe it was necessary. Well, I believe, something was necessary, but that was not it. For those who have expressed that this measure was necessary, I have simply said; "O.K. But, how will it help?" Sadly, most can't explain. It's not that these people have twisted's just that the self-labeled "Masters of The Universe" also had trouble understanding these complex financial instruments.

If government truly wanted to help, they would help save the people by providing low interest refinancing and creating jobs. The measure they have passed does not address the causes of this "crisis," just the symptoms. Thus, I am predicting that this "crisis" will persist for quite some time. Remember, even the lawmakers who were adamant about passing this bill said it was no guarantee, but a backstop.

Also, some people say someone needs to step in because there has been a market failure. I said that view is skewed. There was a failure...and many banks have failed. Their failure should now serve as a warning of the risk of sub-prime home lending and easy money. Those who say our economy will collapse if we don't pour cheap credit into it are high. The credit system was born of our economy not vice versa.

Really though...let's face it, if we're just going to borrow cash and keep spending on crap, we're doomed. Our "leaders" just had to raise the debt ceiling by about 10% to pay for this lump of nothing. Hmmmmmm. Sounds like a national security issue to me. Then again, maybe I'm just a naive capitalist that doesn't understand "the real world."


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