People just dont like depressions. Thats why EVERY country... even the most libertarain COUNTRY has a central bank that does the exact same thing that we do. Hong Kong, European countries, every country does this. but.. its more complicated this time around... since this crash dealt with Mortgage backed securities... unlike previous ones... and thats why this bailout had to be crafted differently.. and it comes accross as an 'evil' deal with the government.
Trust me you guys... I dont want everyone to be lock-step in agreement with the Paulistinians about this. I am a fiscal conservative about every industry EXCEPT this one. The banking industry does NOT work like others.
If you guys really want to learn about this.. take a money and banking class, or an economic history class (I used to teach one). You will understand why EVERY economist knows that this HAD to be done. I truly hope that the greedy, stupid leadership of the banks and the government that intervened with FNMA and GNMA are given nothing... and preferably.. Id like to see them do some jail time... but again.. the damage has been done... and if we ignore it... we will all find yourself in the most horrific economic environment that you can imagine.
Brian
Sorry my friend but I must disagree with you here brother. You have to delve deeper into the history and schema of the concept of the centralized banking system first before you can move on to answer this question.
The sad fact is that a bank, or any financial institution, is like any other business. Pheasant in my opinion is 100% correct. Government should stay out of private business but only over see its legalities. The FED didn't come and bail out Enron and it would bail me out if I were to declare bankruptcy.
The only real problem I have for it being bailed out is that the owners of these entities are cohorts with one another and will virtually create a monopoly should they not be bailed out.
One of the factors causing this debacle is Governments influence onto these banks creating their attainment of bad debts that never would have occurred in the first place had government not been toying with purely academic Sociological Conditioning/Engineering.
When they issue 700 billion dollars it will be the Public who pays and pay dearly from higher taxes, debased dollar/inflation etc.
Hell, I'd much rather see it become harder to get a loan and credit than the past decade of tossing credit, loans and mortgages to every and any unqualified and questionable individual which America will, either way, foot the bill. (this is where I appeal to the expulsion of 30 million illegals and the horrible portion of the black, Arab, Asian .... communities..lol)
In my opinion, this is another sham comparable to "Free Trade". America was the greatest Creditor Nation on Earth until 1987. Post 1987 America quickly became the greatest Debtor Nation this Earth has ever seen. Why? To fraudulently build up Asia via "Free Trade" which is the only debilitating economic factor relating to America's financial position; Year 1988.
Let them fail... Bring their top execs to trial along with the owners of the FED and also all of the corrupt people in Congress who are affiliated, even at arms length, with this defilement of the American People and America itself...
My two cents...
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