In this globalized world we must remember that it’s not just the US that’s going down, it’s the whole world. Have you seen any good news from any country in the last six months or so? Strain yourself and you might dredge some iota of optimism from somewhere, but in general it’s wishful thinking.
President Obama wants a “fresh” approach to the financial crisis, but buying toxic debt and stimulus packages sound like the old school approach to me. Have any bailouts or stimulus packages ever worked before? I think the Obama administration is just as insane as the previous one (if you believe the classic definition of the word). We actually do need a fresh approach to this crisis for everybody’s sake.
I believe that if a company needs bailing out it is already beyond saving and will not contribute to the stabilizing of the economy in the future. Only successful banks and companies can possibly nurse the US back to health. I have to say that the bailout of GM was an extremely temporary measure and you can guarantee that management will be back for more soon. Have the bailouts created any jobs, helped working families, done anything at all? When you look at the dire employment situation you would have to say no.
The old system has failed but no-one wants to see it die. They will continue to support obscene payouts to banks instead of looking for fresh ideas which is what we desperately need. The burden of all this spending will be a tax burden that the ordinary citizen cannot bear. Everything that is being done now is exacerbating an already awful situation.
We must cut out wasteful spending and start to use money in a more reasonable, prudent way. We also must allow markets to get through this crisis with a more competitive philosophy by allowing failed banks and businesses to actually shut down rather than trying to turn them into toxic zombies that endanger the entire world.
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