Dangerous Talk Blog

Wednesday, September 24, 2008

The Financial Crisis in a Nutshell

Correct me if I'm wrong, but here's a synopsis of the financial crisis before us:

1. The crisis was created from the Federal Reserve Bank inflating the currency by loaning too much money on easy terms, so the solution proposed by the Bush Administration is to inflate the currency further by loaning more money on easy terms.

2. Government caused the problem, so the only solution is to give government more power.

3. The particular people who are the only solution to the crisis are the same government officials who made it come about in the first place.

3. The bailout is not just for rich Wall Street speculators, but for Main Street investors with their 401Ks, IRAs and pensions. These people simply cannot bail themselves out because they don't have the money. But the tax burden for the $700 billion plus bailout will not fall on the tips of waitresses and cab drivers, even though these are the only other people in the country with an income to tax.

4. If we don't follow the Bush Administration's exact proposal, there will be a greater financial crisis than the Great Depression. We must believe this because the Bush Administration said it, even though just a couple of weeks ago the same Bush people were repeatedly assuring us the economy was on solid ground.

This, it seems, is a plan designed to work!