Duh!
1. The government causes bad debt by providing inducements and penalties to lenders to get them to lend to those who have a low probability of being able to pay back their loans.
2. The financial institutions get into trouble because of the debts from the bad loans become overwhelming.
3. The markets collapse because of trouble with the money supply.
4. The government agrees to buy back the bad debts.
5. The market recovers.
DocBrain has only one question: why was anything else needed? The hundreds of billions spent for other purposes seem to have been wasted (or, if you prefer, pork or spoils to the victors).
The US citizen has been played. PT Barnum and the modern Democrats would have gotten along quite well.
2. The financial institutions get into trouble because of the debts from the bad loans become overwhelming.
3. The markets collapse because of trouble with the money supply.
4. The government agrees to buy back the bad debts.
5. The market recovers.
DocBrain has only one question: why was anything else needed? The hundreds of billions spent for other purposes seem to have been wasted (or, if you prefer, pork or spoils to the victors).
The US citizen has been played. PT Barnum and the modern Democrats would have gotten along quite well.
posted by DocBrain at
5:49 PM
0 Comments:
Post a Comment
<< Home