Monday, September 15, 2008

Can I get a bailout please?

Remember way back in March when the federal govt had to bail out Bear Sterns? The reasoning was if they didn't the world's financial markets would melt down. And we couldn't let that happen. And remember how if the Fed didn't lower interest rates to a near-hyper inflation level, world markets would crash? And how about the theory that if the govt didn't bail out Fannie Mae and Freddie Mac the world would end? How did that all that work out for everyone?

Well now Lehman is dead and so far - I repeat so far - the govt will not bail it out. And world markets are melting. Now wouldn't it have been a lot easier and a lot less costly for taxpayers to play this out in March after Bear Sterns? Instead here we are with still outrageous oil prices, a $30B giveaway of taxpayer money on the Bear Sterns deal and a $300B+ - and counting - giveaway on Fannie/Freddie. All to come to the same place.

And let's not forget the additional $300B in the home "owner" bailout that will still result in the same crash as without the bailout, only with a $300B tab to the taxpayers. So in total $630B - and counting - of wasted taxpayer money in 6 short months. With the result of nothing.

That's your federal government ladies and gentlemen. Run by idiots who know only one thing. Tax. Spend. Rinse. Repeat.

What the imbeciles earning a US Treasury paycheck don't understand is you cannot fight market forces. Try as hard as you can to prop up a $650,000 median home price in a city with a $45K median income, it won't work. It may work in the short run, but in the long run the system collapses. It's a little like Black Jack. Everyone has a system they swear by. And for a few rounds, those systems work, at least in the eyes of the system holder. But in the log run, everyone loses to the house since every one of those systems tries to defies the basic laws of statistics. And like defying the basic laws of gravity, you cannot succeed long term. Same with trying to defy the laws of supply and demand.

I predict today we will see Barry Hussein Obama as well as Juan McAmnesty out in full force promising to put and end to the crash with a brand new scheme. It won't work of course, but it will cost me a lot of money and go one step closer to socialism.


No comments: