Bailouts have all appeared to have been failures when you look back at them. So why do we still keep hearing of them as solutions?
The financial disaster was going to be bailed out, for example, by a whole assortment of actions:
One: The takeover of banks.
Two: The takeover of Fannae Mae and Freddie Mac.
Three: The Takeover of American International; Group (AIG).
Four: The Troubled Asset relief Program (TARP) to buy bad mortgages from banks.
Five: The Public-Private Investment Program to buy the same troubled assets.
Six: The takeover of GM and Chrysler.
Though we had perfectly good car companies operating elsewhere in the U.S. to pick up business and relocated jobs, we had to bail General Motors and Chrysler. That helped their powerful union but did little else for the economy. Ford and others in the industry operating in the U.S. have been able to do so without that crutch
At the same time we pumped out money like water going into the ocean. Federal Reserve funds are being priced down to practically nothing in the banking system.
All this outlay of funds cost trillions upon trillions. That must be repaid with taxes and cheaper-valued dollars to come in our future, and that of our grand kids and their offspring.
And with little success to show for all that, compared to what would have happened if the politicians and “experts” sat on their hands.
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