I want 700 Billion dollars.I know everybody is talking about it, but I just can't get over the sheer size of that number.
700 Billion Dollars.
That is about 350 Space Shuttles.
Or a whole bunch of other more important, but less cool, things.
You could buy half of Canada for that.
I haven't really decided where I stand on the bailout of the American financial institutions. For me, it comes down to two big issues, but the problem is, they are on opposite sides of the bailout idea.
On one hand, without some sort of action, the American economy might collapse. Bad thing.
On the other hand, bailing out the financial institutions who's own shitty business practices created this whole mess is also bad. Why? Because it tells those institutions something that goes against what I've been told all my life. It tells them that they are not responsible for their actions. It tells them that no matter what they do, and how they screw up, the taxpayer will foot the bill. The government will always bail them out. In fact, by letting Lehman brothers fail, but helping AIG, the American government has told these companies that the bigger they fuck up, the more likely they are to get bailed out of it. This is a dangerous mindset for the people who run those companies to be allowed to have. It promotes recklessness, and will only lead to bigger such events further down the road.
Whether the bailout happens or not, the financial industry needs more regulation, careful regulation. I know that people are going to bitch and complain about that and say that they can make more money without regulation. That is true, they can, they can also lose more money much faster.
Posts
2 comments:
You presented 2 possible scenarios:
1. Bail out Wall Street and economy will recover (or not collapse);
2. Don't bail out Wall Street and economy collapses.
I think there are 2 other scenarios:
3. Bail out Wall Street, economy collapses and bailout turns out to be nothing more than money grab before ship sinks; and,
4. Don't bail out Wall Street and economy and markets "correct" themselves.
I think #4 is unlikely but #3 is a good possibility.
You presented 2 possible scenarios:
1. Bail out Wall Street and economy will recover (or not collapse);
2. Don't bail out Wall Street and economy collapses.
I think there are 2 other scenarios:
3. Bail out Wall Street, economy collapses and bailout turns out to be nothing more than money grab before ship sinks; and,
4. Don't bail out Wall Street and economy and markets "correct" themselves.
I think #4 is unlikely but #3 is a good possibility.
Post a Comment