"It's not based on any particular data point," a Treasury spokeswoman told Forbes.com Tuesday. "We just wanted to choose a really large number."
That makes me feel warm and fuzzy.
The reality is that the people planning this heist know they'd need much more than $700 billion to cover all of the worthless paper in the US. A bill was just passed to hand the big three automakers a $25 billion loan and more are going to come to Washington with hats in hand for more bailouts. Just like when the government predicted the Iraq war would only cost $50 billion, this $700 billion is far from the truth.
If you don't think this has a direct affect to us as Canadians, please read this article from the Globe and Mail on Bank of Canada Governor Mark Carney's thoughts on how this will hurt Canadians.
7 comments:
You are starting to believe the predictions you are reading. The American dollar is not yet a "worthless piece of paper". How about waiting until it actually is, before making such a statement.
I was referring to the bad mortgages, derivatives, and debt exchanges as worthless paper because they hold no market value, which makes them such a wise investment for the US taxpayer
Re
It's a good investment for the capitalists.
No, its not, or else someone else would be buying these investments. The capitalists are staying away from it. The socialists are going after it. Notice how the republicans are the ones holding up this bailout.
The Republicans are the politicians who were deeply financed by the capitalists. The "investments" are not investments in the sense that they are profitable, but in the sense that they bundle bad investments so that the economy doesn't collapse. This is good for the capitalists who financed the Republicans during the last election.
Democrats aren't financed by capitalists? They're all funded by people trying to make more money.
Economy is going to collapse anyway. This is just going to help keep prices up at a time when people have less money, instead of letting prices deflate as they should during an economic down turn.
A bailout would be good for the crooks on wall street that finance both corrupt political parties. That the Republicans are willing to show some backbone on this issue is refreshing, however I expect them to bow to their master (whoever they might be, they definitly are not the 80% of americans that oppose this bailout) and accept the $700 billion robbery.
I already stated that both the Republicans and Democrats are financed by capital. In the above post, I merely make the distinction between the two parties clear: The Republicans are more deeply financed by capital than the Democrats. This is a fact.
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