Unless you have just returned from a deep space journey with no communication, you know that “the financial system” is having some major indigestion. So bad that the US government is taking the unprecedented step of bailing out both quasi-federal and private institutions with taxpayer money. Right now, both Republicans and Democrats are soberly agreeing to a $700,000,000,000.00 bailout package. That price tag is equal to the total amount we have spent on the Irag “war”… or $2,000.00 for every man, woman and child in the US. There will be no raise of taxes but there will be an elevation of the federally mandated debt ceiling to $11.3 trillion (I’m done trying to type all those zero’s). So one can assume that the T-bill printing press is going to be working overtime for a while.
Is this the right role for government? Guaranteeing other people’s greed, stupidity and speculation with my tax money? Would things really be worse if the government just said “Tough shit… you made this mess, now clean it up”. And left them to rot when they couldn’t. And left those who bought houses they couldn’t afford to get foreclosed and on and on. If I miss payments on my car, it gets repo’d. If I make bad business decisions, I do not get a bail out. This whole situation is certainly tough to swallow. Maybe I should convert all of my investments into desirable metals with intrinsic value and bury it in coffee cans in my back yard?