10/01/2008
CYNICAL
Ok, let's say the bail out goes thru, but it is once again imaginary money, that will come from no where, and the markets stabilize. Now the banks must make loans, if they make loans at the old standards the money is once again wasted, inflation rises as there is a sudden boom in the economy, and the dollars falls,commodities rise, poor people around the globe face certain starvation and we are back at square one. If the banks take the money but dole it out at new stricter standards and higher interest rates, there is no expansion in the economy, the rising interest rates boost the American Federal deficits( interest payments on eleven trillion is a lot of money so spending must be cut), the economy contracts and the poor around the world face massive lay offs and starvation.
Good Luck
CYNICAL
Ok, let's say the bail out goes thru, but it is once again imaginary money, that will come from no where, and the markets stabilize. Now the banks must make loans, if they make loans at the old standards the money is once again wasted, inflation rises as there is a sudden boom in the economy, and the dollars falls,commodities rise, poor people around the globe face certain starvation and we are back at square one. If the banks take the money but dole it out at new stricter standards and higher interest rates, there is no expansion in the economy, the rising interest rates boost the American Federal deficits( interest payments on eleven trillion is a lot of money so spending must be cut), the economy contracts and the poor around the world face massive lay offs and starvation.
Good Luck
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