Bush and his Treasury Secretary Paulson are asking Congress to push through a bailout of banks that have gambled and lost. Their package calls for $700 billion that we don’t have by borrowing $2,333 from every man, woman and child in this country. If the plan is passed, it will make this year’s federal deficit a record of ~$1 trillion or 7% of GDP (even bigger than Reagan’s record 6% of GDP in 1983). It would also balloon US national debt to ~70% of GDP at close to $11 trillion. And the plan is no sure fix to prevent a recession or worse!
I know we have to do something, but I don’t accept getting something rammed down our throats by President Bush’s Continue reading →
The bailout completes a trillion-dollar gift from tax payers to maintain some semblance of the US financial sector of the past few decades. The era of investment banks has ended, beginning what may turn out to be an era of inflation and weak dollars. This dollar weakness catapulted the oil price to as high as $130 per barrel, causing the NYMEX trading floor to suspend trading briefly since prices’ record rise was more than the one-day limit.