Wednesday, September 17, 2008

Meltdown

Has anyone been following the worst week on wall street in years? I am trying to get this all straight in my very small brain. Who in the hell is responsible for this? Is anyone at fault?

First, people like Ralph Nader and Ron Paul were predicting this years ago. Our government has continually been lowering it's regulation on Wall Street for the past several decades. There was no one to keep these companies from making incredibly risky investments. Is this a problem? well, Yes. From what I understand, their isn't enough capital or MONEY for these investment firms or banks or whatever the hell they are when their horribly risky investments go sour. So what's the big deal? When they run out of money, the government (yes, our stupid government) bails them out. What do you mean by "bail them out"? I mean our government pumps money into them so they don't just evaporate. How much money? Hundreds of billions of dollars when it is all said and done. Where did our government get the money? I guess its our tax money, but really it has to be deficit spending. At least thats what it seems like to me. 

Look, we as a nation are about $9,000,000,000,000 (trillion) dollars in the whole. This year we are somewhere around 400 billion dollars over budget, which means we don't really even have the money to loan these cooperations. Theoretically, this is an investment in the American economy, so their really is not any other option at this point.  

I'll be honest, I have absolutely no idea how this works. How do you spend money that you dont have? I dont know, but our government can do it and some of the wealthiest cooperations are reaping the rewards.




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