America's bail-out plan | The doctors' bill | The Economist
This is a long article, but worth the read for those that want to get beyond the MSM / political sparring over the "bailout". The chart above is useful because it shows that bailouts aren't new or unusual, and if one puts this one in the context of the size of the US economy, it isn't nearly as large as the MSM would like us to believe.
My contention is that they have decided "crisis is good for BO, so let's make the crisis as big as we can". As I've said before, if you were told that you would have to invest 1/13th of your salary in your company in order to continue to get the full 13/13ths next year, and have an excellent chance of getting the whole 1/13th back in 5 years or so, I doubt it would take long to decide. When the MSM keeps throwing around the figure $700 Billion though, it just sounds "too big to believe" the US Budget is over $3,000 Billion ($3 Trillion) EVERY YEAR!!!
Here are a couple of especially good excerpts from the article:
This is a long article, but worth the read for those that want to get beyond the MSM / political sparring over the "bailout". The chart above is useful because it shows that bailouts aren't new or unusual, and if one puts this one in the context of the size of the US economy, it isn't nearly as large as the MSM would like us to believe.
My contention is that they have decided "crisis is good for BO, so let's make the crisis as big as we can". As I've said before, if you were told that you would have to invest 1/13th of your salary in your company in order to continue to get the full 13/13ths next year, and have an excellent chance of getting the whole 1/13th back in 5 years or so, I doubt it would take long to decide. When the MSM keeps throwing around the figure $700 Billion though, it just sounds "too big to believe" the US Budget is over $3,000 Billion ($3 Trillion) EVERY YEAR!!!
Here are a couple of especially good excerpts from the article:
The consequences will probably not be so far-reaching. The true cost to taxpayers is unlikely to be anywhere near $700 billion, because many of the acquired mortgages will be repaid. The expansion of the Fed’s balance sheet reflects a fear-induced demand for cash, which drove the federal funds rate above the 2% target.
Yet predictions of a sea change towards more invasive government are premature. The Depression witnessed a pervasive expansion of the federal government into numerous walks of life, from trucking and railways to farming, out of a broadly shared belief that capitalism had failed utterly. If Mr Paulson and Mr Bernanke have prevented a Depression-like collapse in economic output with their actions these past two weeks, then they may also have prevented a Depression-like backlash against the free market.
No comments:
Post a Comment