So, Congress is now going to vote over the 700 billion dollar bailout plan that is doomed to fail. Why is it doomed to fail? I will explain. It’s quite simple really: Bush and consorts claim that these ‘bad mortgage assets’ can be bought now and sold at a higher price later on. I don’t think he has paid much attention: these are BAD mortgage assets. This means they are mortgages from people who can’t repay their houses. NO ONE SANE will ever want to buy these mortgages from you, it’s like offering a shipload of fake golden watches. So we have the US government buying a shipload of fake golden watches for 700 Billion dollar, claiming to the tax payers that they will be able to sell those at a higher price later even if everyone knows those watches are fake.
This is insane! What’s also insane is to see Bush address the nation telling everyone they are bailing out Wall Street so they can borrow more money, to send kids to school, for example. Borrow more money! Has this guy totally lost it, or what? He wants to borrow 700 Billion dollars to buy a shitload of fake golden watches, and why, oh because then you, the taxpayer, can keep borrowing money and put yourself into more debt!
I dont think I have ever seen a more insane line of logic. We borrow your money, buy fake shit with it, so you can keep borrowing more money too. Oh, and we will lower your taxes too while we’re at it. Let’s borrow, for there ain’t no tomorrow!
It seems like ‘borrow’ is some sort of Financial mantra in the States. You want a soul? Just borrow one. You want to have a plan? Just borrow someone’s brain. You want your life back? Some day you will be able to borrow it from the only bank left, the Federal Reserve.
M.H.Benders, 29 September 2008