Don't Buy Into the Euphoria: Bailout Is More Proof That No Situation Is So Bad That It Cannot Be Made Worse By Politicians

First off, it is important to understand that the government created the mortgage mess that ruined the nation's financial institutions that cooperated in, and sought to profit from what the government was doing. How and why this occurred is being outlined on this blog in a series of posts entitled The Mortgage Debacle.

Had our 'leaders' been willing to let things take their course, the nation's financial system, would have melted down and died, succumbing finally to the underlying terminal rot of profligacy with which it (and the nation as a whole) has been afflicted for years. The process would have been painful but a new, vigorous, and healthy banking system would have emerged and done so quickly.

But no . . . this was not permitted to occur. Nature was not allowed to take its inevitable course. The guvmint, being run by politicians fearing the wrath of a public unaccustomed to any discomfort, is bailing out the whole kit and kaboodle in a scheme that is going to:

1. Cost an untold amount in excess of a trillion dollars, and

2. Delay the inevitable but for the time being keep the system limping along, still ill but afloat.

The government of course doesn't have the trillion dollars plus necessary to take the bad assets off the hands and financial statements of the failed financial institutions. But not to worry . . . they'll print and borrow the necessary greenbacks. Don't concern yourself about the fact that this will deflate the dollar, cheapening it at the expense of those who have been foolishly frugal and imprudent enough to actually accumulate any savings for the government to steal from them in this way.

Finally, as is indicated above, this will postpone but not avert the inevitable ultimate collapse. The longer that result is artificially delayed the more long lasting and painful it is going to be.

In the meantime, if you have any items that you don't want, things you wish you hadn't purchased because they turned out to be useless, worth less than you paid for them, or not up to your hopes and expectations, perhaps you can bundle them up and get the government to buy them from you If the government is willing to do this for the banks, why shouldn't it do the same thing for the rest of us?