Sunday, February 22, 2009

Why the Bailout Doesn't Matter

I was getting worked up earlier about the idea that we're bailing out these incompetent scumbag bankers, auto company managers and delinquent home owners, but now I realize that it's much ado about nothing.

No money is coming out of my pocket presently, and the inflation created by the bailouts is not going to be a problem any time soon. So the real issue is that we, the taxpayers, are going to owe all of this on the back end. Just as Wall Street had its pyramid scheme which wound up with homeowners and banks holding the bag while the execs drained out all the money, we're just adding another layer to the pyramid with the taxpayers taking over for the banks. No problem, when we're asked to pay, we'll just do what the banks did - throw up our hands and say we're unable. At that point, there won't be anyone left to borrow from, and so the government and the world order will simply collapse. Which is what would probably happen now if we didn't give our money to the banks.

So we're buying a little extra time, pretending we can actually guarantee all that debt. Might as well enjoy it while it lasts. Because after the collapse - who the hell knows?

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