Posted by
brucetbo on Wednesday, October 01, 2008 12:58:50 PM
Now that Washington has rejected the $700 billion bailout its safe to say the American people have dodged a bullet... for now. With wall street, legislators on both sides of the isle, and even the President eager to "act" , another bailout plan is a near certainty. The only real question is how much damage they will do.
News flash folks, the federal government does'nt have $700 billion so where does the money come from? Well... the federal reserve could print it but that would cause inflation and prices to rise. We could borrow it but that would further damage our financial standing in the rest of the world and increase our dependancy on foreign economies that are now becoming unstable because they are largely backed by the floundering U.S. dollar. Not to mention the fact that both of these solutions would add billions to the already staggering national debt.
So whats the answer? LET WALL STREET FAIL! Obviously there would be consequences to all of us if this were to happen but at some point we have to let the market correct, suck it up and move on. How much debt are we willing to pass on to the next generation to avoid a recession today? Recessions generally last 1 to 3 years and would do far less damage to our economy this government proposed bailout.
Most businessmen and economists say recession is imminent with or without a bailout so why saddle taxpayers with more debt for the sake of preventing the unpreventable? Here's an idea America should live within its means! How about spending less than we earn instead of more? How about letting a failed banks fail and the CEO's of those banks go down with them! If this leads to recession, so be it. It has been said that suicide is a permanent solution to a temporary problem, this bailout would have been just that.