Monday, November 24, 2008

We are putting on one bandaid at a time. What happens when they all need to changed at once?

This is like the story of the Dutch boy who has to plug the wholes in the dyke. We are entering the surreal range with the government saying it can stand behind 7.7 trillion dollars of bad debt if needed. This on top of other financial committments. I am at a loss of words for our hubris. Its like the government is placing itself over the markets almost as a god. The effort to kick this problem down the road like every other issue is all they know to do. There must not be pain now. So... who do we bail out next?

When the Dutch boy's Treasury Sec Paulsen and Fed chairmen Bernanke see that there are too many holes to plug,then what? If we have to make good on even a fraction of this where is the money coming from. There is no pile of money sitting anywhere that they can dip into.

At some point, instead of seeing a drfting down of the markets they will give us a drop the likes of which never seen , when its realized that the government cannot just dictate and what the values of things should be.

U.S. Pledges Top $7.7 Trillion to Ease Frozen Credit
By Mark Pittman and Bob Ivry
The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after ....

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