Tuesday, September 30, 2008

Why the bailout failure was not a failure

I know some things about certain subjects. I don't know diddlysquat about economics.

Paulson and Bush the "W" and other wealthy people want me to be scared. Very scared. A taxpayer scared enough to fork over $700 Billion (with free refills!) to bail out faltering banks and other firms saddled with bad assets due to their greedy overreach. Screw that.

They tell me that if this doesn't happen that we're all going to go down. Hard.


They say if I don't, that no one will be able to get credit. I think maybe we owe enough already.

They say if I don't, that the economy will depress. But did the concept of economic expansion and unlimited growth ever really make sense? We're living on Spaceship Earth, Folks. What happens when "unlimited" expansion depletes the resources we've got here? There's only so much. Maybe it is time to slow down.

Bush said the nation is facing "the real prospect of economic hardship." I say, "Bring it on."

I don't care if my retirement account goes to zero. I don't care if I have to eat thin soup for the rest of my life. I don't care. I will not approve giving those greedy bastards one penny.


thailandchani said...

Now *this* is fascinating! We both posted about the same topic this morning. We are coming from opposite directions... and ended up at the same place!

It's wonderful! :)


Mnmom said...

I'm on the fence, I don't want ALL lending to go down the tubes. I'll need another car within the next two years! I'm hoping that all-electric versions are available by then.

Randal Graves said...

What happens when "unlimited" expansion depletes the resources we've got here? There's only so much. Maybe it is time to slow down.

I don't know many times I've gotten into arguments with my wingnut relatives over this crap. "But if your taxes are higher, you'll have less stuff!"

"Yeah, and? We NEED less stuff."
Of course, I only try to buy the stuff I REALLY need, like music. ;-)

Border Explorer said...

Veeerrrrrry interesting, Chani. I love how we got to the same place from different starting points. Amazing.

As I stated at the onset, I don't have an econ background. I think that's why I get so angry about this deal. The prevalent fear factor plays right into my ignorance. The similarities to the rush to war with Iraq (2) & the Patriot Act remind me how unjust all that was--based on lies. It gets my hackles up.

I love how calm and tranquil your post was. (sigh) I'll chill out by tomorrow.

Ruth Hull Chatlien said...

Well, to a large extent I agree with you. Except that some of the people who will be hit hardest by a contraction of credit are small businesses, who often need loans to get through the seasonal ups and downs in many industries. For example, if you manufacturer something sold mostly at Christmas or during the spring gardening season, your expenses will be year-round but your income surge will come mainly in one quarter. Loans are what tide those people over. Credit is used for a lot more than just buying more things and bigger houses. That's the kind of thing that worries me about the current financial crisis.

Border Explorer said...

MNMom, I don't want you to be without a car. [I exaggerated for effect.] And wouldn't it be nice if we could dig up a few measly billions for green energy development? And universal health care? And...

Randal: More money for music, less money for war & fatcat bailouts--now that's a PLAN!

Liberality said...

I can so relate to your post here. The stock market going down after the vote was them having a hissy fit because they didn't get their way.

Border Explorer said...

Ruth, that is the kind of basic econ knowledge I lack. Thanks. That is worrisome.

Liberality: May I quote you back to yourself? "...they want our social security and they are determined to get it." I find that worrisome also.

Fran said...

In the real world, if businesses gamble on unstable things & make a bad choice, then you own it. What if some high rollers with bad choices cull themselves? If they were not up to running a viable business, than so be it. It's not like they did not know their business was skating on thin ice. What we don't know is the magnitude of this "Economic Katrina". Is this some staged scheme, or has Bush thrown this final blow to our country?
What we do know is this administration has GOT to go.
I'm thinking this is the silver lining of this mess.

Carol said...

I don't know diddlysquat about economics, either. I DO know not to overspend and get myself into a hole. I Do know enough to not go into worse debt in order to pay an existing debt. (Those two things make me smarter than the big guys, I guess.) But other than that, this complicated mess is beyond me. I feel like we pay the piper now or we pay later, but there is no getting around paying.

The problem is big enough, after all these years, that I don't think there are any good solutions.

Liquid said...

{{{standing ovation}}}

Border Explorer said...

Fran & Carol, you two are talking what sounds like common sense to me. "Economic Katrina" names it!

With my whole heart I want Bush & Co out ASAP. However I don't feel confident that would turn things around. I'm afraid we're in too deep for that, that we're all implicated.

Liquid: Welcome! I've been meaning to meet you! I'll be right over.

susan said...

The whole concept of endless productivity always struck me as ludicrous. Buy tons of stuff so you can throw it away or store it so you can buy tons more stuff ad infinitum. You don't need to be an economist to see where it all leads. Nice one, BE.

Mauigirl said...

Probably about a year ago I wrote a post saying what this country needs is a good Depression. I was exaggerating, of course. But I do agree with you that it won't kill us to learn how to save money again, learn how to do without sometimes, learn how to enjoy things that don't involve buying something. There are too many McMansions, too many people with Hummers and expensive gas guzzling cars, too much asphalt pavement and strip malls and Wal*Marts and places to BUY stuff. There are too many banks. Too many nail salons. Too much of everything. We don't need all of this stuff, but we keep developing more and more of our land just so people can make more money and buy more stuff. It is out of control. An economic decline like this is the so-called free market's way of correcting the problem.

As Ruth says, we don't want it to be so bad that a whole lot of people are out of work or really having trouble. But if it means we drive our car a little longer or don't buy a bigger house, then I can think of worse things.

Mauigirl said...

Mnmom, by the way, I wasn't referring to you when I said it won't hurt us to drive our car a little longer - it was just a general comment. You do deserve a new car, especially if you're planning to buy electric! ;-)