Problems with Bailouts

Reply Sun 30 Nov, 2008 08:05 am


The government bailouts are an unbelievably enormous mistake (which probably won’t even work).

1) They convert debt that needs to be unwound through bankruptcy into taxpayer debt that can’t be unwound.

2) The bailouts are morally offensive, handing vast sums of taxpayer money to those who should not be getting the money.

3) If the government persists with escalating bailouts and out-of-control spending, the U.S. will come up against the limit of its ability to borrow - making the economic situation far worse.

4) Interest on the debt will burden taxpayers and the economy for the foreseeable future. (And we all know that the government will be tempted to inflate it’s way out of this enormous debt burden.)

5) People don’t see the government debt as their debt. Because it isn’t. Increasingly folks don’t even identify with the government. It’s no longer “our government”. It’s controlled by an entrenched elite that serves itself.

6) Folks are tired of being suckers watching the treasury looted, watching illegal aliens take jobs and crowd hospitals, watching politicians spend, spend, spend on programs “for the people” or “for the children” or “for the poor” - programs which rarely help anyone except bureaucrats and special interests.

7) Increasing non-cooperation with government regulation and tax law is likely to ensue. How do people respond to a government of looters? How well does Putin’s Russia work? Do we really have to go down that path?

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cicerone imposter
Reply Sun 30 Nov, 2008 06:12 pm
I'm not sure that the list is even accurate as to the consequences.

It's no longer "taxpayer money." It's gone way beyond the ability of the current generation taxpayer to pay down the debt. How it plays out in the long-run can only be guessed at, and no one has a weejee board that can foretell that far ahead in time.

There are many dynamics now trashing the economies of many countries. Iceland is now a basket case, and it's now believed it'll also impact Ireland and the UK, because of their relationship in banking and investments in Iceland.

We're talking trillions here, and that'll surely impact the world economy in ways that has barely rubbed the surface.

Top it off with most major economies printing money like crazy to keep their banks in survival-mode, we have a whole new scenario not seen any time in the past.

It's a new ball game with new rules, but nobody knows who's going to end up the winner.
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