I've noticed some on FR would rather have that.
When McCain gets in we'll see if he can cut spending like he's been wanting to do for years. If he can do that significantly, that alone could take a huge bite out of this debt.
Oh, and cutting corporate taxes like he's been talking about won't hurt either.
I don't know what economics you have studied but there are things called business cycles and failures.
How can Republicans, in the future, stand in front of us and spout free markets and trade with a straight face?
Individuals should have a year of rainy day money and be prepared to maybe work at a job for a short period of time even if they are over qualified for the position.
You survive and hope for a better day. Been there done that and would again if necessary.
This bailout is a total capitulation to socialism to the fullest.
Yep, let the market clear out the thiefs and excesses in the system.
I'm torn over it. Obviously you don't want a deep recession, but on the other hand it's a bad pattern to have the govt saving the markets. It's setting up the "moral hazard" that economists warn about. Business will take greater risks when it knows govt with bail them out. Privatizing profits, socializing losses, etc. This just feels like it could be a short term fix to a much deeper problem that isn't being addressed and that in fact might be made worse. And even if it works, we lose. It makes the Keynesian types and the big-govt left look smart. People like Chris Dodd are going to wind up looking like heros. I'm a rank amateur when it comes to the technical workings of the markets, but as a matter of principle (a la Hayek and Mises and the rest) this does not seem like a good thing. Nor does it seem like the least bad thing necessarily. On the other hand, we live in a real world and there are exceptions to ideology. I don't know. Tricky stuff.
As I recall, the RTC actually ended up losing very little money, or made some in the end (see http://en.wikipedia.org/wiki/Resolution_Trust_Corporation) If these portfolios are managed correctly, it wouldn’t surprise me to see the taxpayer make some money on this. There is also the potential for grand theft on an empire scale, but if there were ever two people who could stand in the way of that, McCain and Palin are those people. I don’t think this is the disaster people are making it out to be, especially if the govt can get these notes for ten cents or even thirty cents on the dollar.
Get real. McCain’s proposed spending cuts won’t even amount to a drop in the bucket that is our national debt.
“The government solution to a problem is usually as bad as the problem.”
Milton Friedman
It only postpones the deep recession/depression until after the elections - which both parties want because the Democrats aren't sure they'll be able to capitalize on it.
I've noticed some on FR would rather have that.
No some of use do not want the politicians in the business of picking winners and losers, because when they do the person that gave them the most money wins. And there is actually a thing called supply and demand.
“It’s the only answer unless you want a deep recession.
I’ve noticed some on FR would rather have that.”
What is coming from the stupidity of trying to borrow our way to prosperity is a deep depression to an all out collapse. We are already more than bankrupt! Have you seen the legislation for this thing. Lets just say “King- Paulson”. There is so much wrong with all of this I don’t know where to begin.
A deep recession is already in the cards. Saving the world financial system from collapse is no guarantee we won’t be in for deep recession. That is a done deal.
RTC II® is only to prevent panic, bank runs, and a meltdown of the entire functioning financial system. It does little or nothing to change the market fundamentals. House sales are poor, house prices are falling, house foreclosure repossessions are soaring, many banks are insolvent, unemployment is rising, the consumer reduces buying.
The deep recession is cooked in. There is no avoiding that. They are still hoping to avoid the depression.