Tuesday, September 30, 2008

My Favorite Article about Bailout Plan

Just had to link to this. Now this is thinking that I can identify with. It is kind of harsh sounding, but it makes sense to me. Maybe the first thing that has made sense in all this economic talk yet.

Do you think that bankruptcy may indeed be the answer to the problem instead of being the big fearful monster to avoid?

5 comments:

Adam Gonnerman said...

The trouble with this is that there's no way to contain the meltdown. The credit market between banks is severely restricted right now, and already there are reports coming in from lumber companies and publishing houses not being able to get the credit they need to meet their day-to-day expenses. To get an idea, my father was a farmer and depended on loans to get things going every year. His farm credit line was what kept things going. He paid it back year by year with the harvest and livestock sales and year after year borrowed again. In the current environment I suspect there will be a lot of farmers unable to find credit pretty soon, and small businesses can forget about loans to expand their operations. Banks are lending to each other, let along to business clients and pretty soon none of us will be able to access credit. The $700 billion bailout is an attempt to remove a big part of what's keeping banks from lending off their books, though there's no guarantee that'll be enough to get things going again.

Pastor Phil said...

These 60 top economists who wrote to Washington seem to think differently. As for me, I simply say we let them fail, and put the same money into things that don't fail, rather than into the hands of the same failing institutions and their failed leaders.

$700,000,000,000 would certainly cover all those farmers, and the people who paid the taxes would be bailed out instead of those who have gotten rich off the backs of the tax payers.

There is a reason the law of Moses had a year of jubilee. That at some point in the broken systems of this world seems to be the only answer.

Is bankruptcy a jubilee year forced upon a nation perhaps?

Anonymous said...

I am no economist but my sense is that we're going to hurt somehow from this sometime(how much I'm not sure). The bailout plan will just delay it.

Think about it, If there was no economic crisis what else could we spend 700 billion dollars on?

IZenBet said...

ooo man. carl i like your sense of humor. but i agree in with a lot of people who say throwing money at the problem won't make it go away. after years of spending money that wasn't there...maybe it is time to let consequences happen. i know at this point the money has been spent, but bleh, that was my money, now it's in joe's pocket....and what's worse is gov is (we're) giving money to people who seem to love money.

Unknown said...

The perscription drugs would stop, for a while. That is one problem, though not insurmountable.