Remember when the politicians were crying out for the 700 billion dollar bailout to be approved so that the credit crisis would end? I do.
Well guess what? While the politicians ask for the release of the last 350 billion of the bailout, the bankers are talking about how they are using the money to pay down their loans.
What is not being discussed how they are planning on lending the money out to businesses and consumers.
Congress approved the $700 billion rescue plan with the idea that banks would help struggling borrowers and increase lending to stimulate the economy, and many lawmakers want to know how the first half of that money has been spent before approving the second half. But many banks that have received bailout money so far are reluctant to lend, worrying that if new loans go bad, they will be in worse shape if the economy deteriorates. NYTimes.com.
That is the problem, the government gets in the middle of these situations and makes the situation worse. Now we have every industry begging for handouts and the government is listening to them.
What happens when the Feds run out of money and can not borrow more?
What happens when Social Security and Medicare run out of money?
What happens to the United States and our children?
I promise you, it is nothing compared to the pain if we had practiced a little self restraint in 2008 and 2009.
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The sad thing is that our children are going to pay for this mess for the next few decades. Social Security? Don't count on it….As long as countries like China are in business, we will always have money to borrow.
The government and the Federal Reserve (which is neither of the two) created this mess in the first place. Why would anyone in their right mind assume they can fix it? More tales of the fox guarding the hen house.