Should we pass a newly revised $700 Billion Bailout?
While it seems extremely complicated, the answer in my opinion is no. And the fact that the house agreed and voted no for the bailout/rescue the first time is quite a shocking relief. Refreshing even. That there are still politicians who are listening to the people who elected them is almost mind blowing.
Will it last? OR will fear win out and a newly revised bill be passed? I hope not. At some point, the market has to self correct itself. We should take our losses now, allow the economy to recede now, liquidate these companies assets (instead of bailing them out and having the government take ownership - which is socialistic) and allow them and the market to self correct now, before things get worse. Allow prices to drop. It might suck for a whle. But I think it would be far better for us in the long run.
I suspect that voting for the bailout is kinda like putting a bandaid on a more serious problem. And that is the fundamental issues with the structure of the US economy. Having a Federal Reserve bailing out companies and now owning companies like Fannie Mae without Congress even having a say is NOT good. So the problem runs extremley deep and that the structure of this economy is not working, clearly. We do have the opportunity to stop this problem now while it’s tiny, versus allowing us to throw money at the problem in a hope to correct it without even looking at what caused the problem originally.
How can you pass a $700 billion dollar bailout plan when we are almost 10 trillion dollars in debt? Does it make any sense to go further in debt to get out of debt?? Put simply, we don’t have the money to pass the bailout. The government’s solution is simply to print more money. To create it out of thin air, so to speak. Printing more money only hurts the US dollar further by weakening it’s value further and ultimately will have an impact on the global economy.
It is simply not natural to have consistent and never ending expansion. To me that’s cancer. The natural flow of things in this universe is expansion AND contraction. For example, I think we have hugely artificially inflated housing prices that the average person simply can not afford. And that the value of those properties is exceedingly top heavy. How can house prices explode and the wages the american citizen maintain the same and that not have an effect on the economy in the long run? And yet we are still building more and more houses.
The bill in it’s initial state would not help the average taxpayer. It would not help people who took out mortgages they could not afford. Apparently, it would help the banks who loaned them the money to loan more people money?? And yet both Presidential candidates said they would vote for it?
Well what about people not having access to credit? Is that such a bad thing? Should we be buying things we can’t afford in th illusion that we will pay them back at crazy interest rates over time? Even Warren Buffet who owns a credit card company says people shouldn’t have credit cards OR they shouldn’t keep a balance on their credit cards. But yet some people have to do that just to survive these days.
The whole thing is a mess. But it is encouraging that the house voted no the first time, will it last? It’ll be interesting to find out…that and the debate coming up Thursday evening should be eye opening.
