It's a Bailout

For some reason this failed bailout plan or the next one they propose doesn't feel right. I get bothered by the news and business shows that tell us the impact of this "rescue" plan points to you. You are the one that will be impacted which means you won't be able to secure a mortgage, buy that car or get that credit card. See a theme here. There's no change. If the markets work, things will get real tight and put a squeeze on everything. There will be a shake up and lots of pain but in the end, the fools that gave credit to everyone will go away. The fools that took credit from everyone will be bankrupt and new credit requirements dictated by the market will require them to have income and the ability to payback credit. The credit markets are tight because no one knows who is good for the money, so let the market figure it out. Let the market purge the weak players. The strong will lend to the strong.

Everyone calling for the bailout says if this works we should see a flourishing economy because bad debt will be gone. But it won't, it will still be there rotting. Once again, we are leveraging the future to pay for sins of the past. I really believe we need a purge, like the interest rate hikes of the late seventies to purge the inflation.

As a nation, we can decide to bailout this financial crisis but how are we going to change the habits?