Wednesday, September 24, 2008


OK, folks. We've got two choices:

1. We let the market flow freely, with a high probability that huge chunks of it will bottom out due to very poor investing on the part of the "smart people". The economy will probably go into a tailspin for at least a couple of years, and things will get much worse before they get better.

2. The federal government steps in, buys up all of that bad debt, and keeps us out of of a deep recession. All of the "smart people" get to keep their high paying jobs, and probably come out of all this at least as rich as they are now. We will probably go into a recession anyhow, but in the short term it won't be as bad as it could have been. Our national deficit goes up at least another trillion dollars or two. Our children, grand children, and great-grandchildren will be paying for this.

Personally, I don't see a good choice here. I believe in free markets, but I don't want to see the economy circle the drain for a decade because of greed and bad judgement. But I also don't want the government to continue its habit of keeping the terminally stupid in the black.

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