manikmikanik's Comments

@ dbsmall - I agree with your assesment, I guess I simplified it too much.

That being said, your option 2 sucks, but that's the one I'm sticking with. And it will suck big time.

At the same time, the gov't won't let that happen, I think we're stuck with option 1 whether we like it or not. Kind of like we were railroaded into Iraq against popular opinion.
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My gut tells me that this "bailout" is wrong. If "the banks fail" so what? The law of supply and demand means some banks will flourish. The banks that don't fail will have better practices and self regulation. If the economy goes south, it doesn't mean there is no money. It means hard times.

The banks that fail will fail because they promised investors money they didn't have, with the erroneuous expectation that the housing bubble wouldn't burst. For that, I think they should fail.

That leaves me with two questions:
1 How hard are the hard times if the govt doesn't do something?
2 What are the repurcussions of the govt assuming the risk?

Opinion 1: I have no clue, like most, and have a feeling that my fears are being played like a fiddle by the administration and consultants to the administration(Wall St).

Opinion 2: The govt that cannot fix nationalized education is going to assume responsibility and risk of the mistakes of the "professionals", now consultants to the administration? Wait a sec.

I am cringing on this one as well. This "fix" gives the govt too much power. Invoking a terrifying internal and external threat is the first step to making a democracy a military state, as if we aren't half way there. I don't think America should give in to this false sense of security.
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  • Member Since 2012/08/12


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