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“Investments” — 4 Comments

  1. It bothers me a lot, these bailouts. While I understand that not doing so would likely result in lots of people losing their jobs – and contribute to the cascade of no jobs -> no money to spend on whatever (from rent to utilities to McBurgers) -> more layoffs -> round and round we go – I just don’t think it’s right that the Federal Gov’t gets in the mess, spends absurdly huge amounts of money, and just adds more fuel to the problem instead of letting it burn itself out. How does incurring MORE debt get us on more stable financial ground?? And who’s gonna pay for it? The few people left who’ll still have jobs. And their children.

    If a business goes under due to faulty business practices, planning, or decreased market share – or whatever – then they need to go down. I think it’ll be far, far better for everyone if we let the financial wounds open to the air and leave them alone to heal or die, than to keep putting on and ripping off bandages, then poking the scab only to slap on another bandage which we then rip off again… All we’re doing is making sure the problem continues. It’s not going to get better, and it’s not gonna fade away and die. It’s just gonna keep oozing and oozing and oozing.

    As a nation, we need to stop throwing money at problems. It’s what got us in this mess in the first place.

  2. Amen. As far as I know, economics is economics. There aren’t different kinds for personal and federal. I tried and tried to spend myself out of debt, and it didn’t work. Why do the Feds think it will work for them? I’ve already apologized to my kids for the massive debt we’ll be leaving to them and to their grandchildren.

  3. I totally agree with both of you. The other thing that scares me is: once the government gets in, will it ever get out? I suspect not. Then we’re saddled with another bad investment that never goes away. Just what we need.

    Oh, and by “we” I mean the people of the world. Like it or not, we’re living in a true global economy, and our debts and bad fiscal policies reverberate around the world with the speed and force of another Krakatoa.

  4. Good point, Carter. We still have New Deal programs hanging around. I don’t know if FDR intended for those to be with us into perpetuity, but they are. So my guess would be, no; once the government gets its foot in the door, it’s there for good and sooner or later will kick you out of the master bedroom.