Friday, November 14, 2008

The slippery slope of bailouts


comic from: http://www.redplanetcartoons.com/

"When governments attempt to "fix" economies by meddling with the free markets that power them, these would-be market-driven economies become political footballs. Economic decisions that would have been fairly and justly arbitrated by unbiased, natural laws of economics become decided on purely political grounds. Markets lose stability in direct proportion to the extent of such meddling. This is certainly the case with the government "fix" known as TARP, or Troubled Asset Relief Program. The bailout package was originally crafted to relieve banks so that they would remain solvent, preventing further meltdown of the U.S. economy. But with $700 billion up for grabs, TARP's original purpose was thrown under the bus in the gold rush that ensued. Now everyone wants in on the government's largess, and markets have reacted accordingly. And why not? Why shouldn't we all line up to "get ours" if the government is giving away "free" money? Sadly, this seems to be the new American corporate mindset." - Mark Alexander from PatriotPost.com

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