Now that our government passed the bailout Paulsen and others are re allocating where it goes. Remember I said they were asking for all that money and telling us "trust us we'll figure out who deserves it."
Now many other sectors are coming forward asking for funds. They all begin their request with how crucial their survival is to our economic system along with the refrain "you already bailed out AIG, Freddie Mac, Fannie Mae, etc"
That's the problem with government "bailing out" troubled sectors. As they "kick the can further down the road" the parade just gets longer. This week Chrysler, Ford & GM are begging. But when the 3 spokesmen fly to DC from Detroit in 3 separate corporate jets why would any rational person listen to their plea? Clearly those 3 just don't get it. I'm sorry that many folks will suffer if sectors of our economy fail. I may also suffer, but I'd risk that in exchange for a free market system that sorts things out over time instead of relying on government corrections/interference.
Looking back to the great depression, many experts feel that Roosevelt's "New Deal" prolonged the depression for 7-10 years when market forces would have corrected the economy in 3-4 years. I majored in economics so I know economies go through cycles. I was also taught that government's role was to act as a stimulus when times got slow and a restraint when things got too fast, eg inflation. One economic principle I learned way back then was government was more effective slowing things down than stimulating the economy. Personally I'm not sure our government is effective at much any more except mortgaging future generations with a ton of financial obligations.
Kick the can, kick the can.......maybe someday we'll figure out how to refill it instead.
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