Bailout = Didn’t Work
Not like this is news to anybody, but the economic recession – perhaps even depression – that the massive federal bailout of the American financial sector was supposed to “rescue” us from didn’t work.
In fact, it’s looking like all the bailout is going to end up doing is tack an extra $700 billion onto our already out-of-control national debt.
Stocks around the world took it up both the yin and the yang early today, which could lead to the bloodiest day Wall Street has ever seen.
From the AP:
The dour outlook convinced investors that the world economy is headed for a long and severe downturn despite a raft of government rescue efforts aimed at pulling the financial system from the brink. It also indicated that the tremors caused by the global credit crisis may have only begun to be felt in their true scope and magnitude.
Wait a minute … so why the hell did we expose the U.S. taxpayers to this $700 billion risk? And more importantly, since it clearly didn’t work – why is Washington’s Plan B to spend another $150 billion in tax dollars?
Some would argue that our economic modeling is too simplistic, and fails to account for the eventual stimulative effect of the bailout.
We would argue that those are the same big government idiots who got us in this mess in the first place.
Comments
By Joseph Reynolds on October 24th, 2008 at 9:47 am
Actually what we fail to account for is human greed. The $700B will be sucked up by the few thousand wall street types that accounted for the problem in the first place.
We cling to “less regulation” in the belief that basic humanity will always do the “right thing”. Even Greenspan just came out and siad that he badly underestimated the consequences of assuming that the Free Market would act in the best interests of the company and stock holders if given a climate of little to no regulation.
Until we change the model that allows them to manipulate the economy for their own gain…it will happen again..and again..and again…