Although I’m as pissed off with all these bailouts as probably other parts of main street are. At the same time, I’m foolish enough to be believe that unless there is some radical change in the way our economy works there is/will be no “main street” if “wall street” collapses.
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Do you not find it curious that the stock market is about at the same levels it was back during the LTCM days — more than 10 years ago? Could it be that the bailout of LTCM didn’t decrease systemic risk, but rather increased it by encouraging malinvestment in ‘financial innovation’?
I disagree that the government bailouts decrease systemic risk. All the government can do is transfer systemic risk from private parties to the taxpayer.
Do you really think that propping up idiotic/fraudulent companies is decreasing systemic risk? Do you think that FHA loans with $700K limits and 0-down is decreasing systemic risk?
The problem during this time period is not lack of credit. The problem is lack of credit-worthy borrowers. Credit needs to contract during this portion of the cycle, but the government isn’t allowing it, which is increasing systemic risk.
I can’t believe that you and Allan call yourselves conservatives. You have way more faith in the goverenment than either me,, or any of my liberal buddies.
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Breezie. What is it that you want? Do you want a complete collapse of the U.S. economy? Do you look forward to everyone being thrown on the street, no food, no water, and everyone armed with guns, reversion back to the wild wild west in which needs/wants are satisfied the ones with the bigger guns….It’s not a question of whether or not government throwing more money is risky or not. Everything has risk. Guess what, this is the almost like General Custard’s last stand. It’s the Hail Mary, or whatever your faith calls it. Obama and this administration just traded off our future generations by how much we’re going to spend. We’re going to be spending more money on bank bailouts. You think there are better alternatives?
And BTW: this administration is doing about the just about the same in terms of deregulating, relaxing rules, and expose this country to more risk. Weren’t you one that put voted for the admin? What were you thinking when you voted for a lopsided 1 party dominated government. It was an open ticket just like how the rep’s had it for almost 8 years. 🙂
