Quote:
Originally Posted by IROC
My fundamental problem is "where are we going to get $700 billion? Where does the money actually come from? We don't really have it, do we? We have to borrow it, right?
Also, I've never heard what the scenarios entail if we don't go with the bailout. All I've heard is "it's bad, really bad". Define "bad"!
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The Federal Reserve creates the money
literally "out of thin air."
The effects on the economy are really going to be about the same either with or without the bailout (because the Federal Reserve will still be engaged in its continuing bailout of banks even without the bailout.)
The dollar will crash internationally, banks and businesses will fail, inflation will ravage our economy, etc.
The difference between passing the bailout package, or allowing market forces to correct the problems is all about
who will bear the brunt of the carnage.
Without the bailout, those who created the situation will be hit the hardest.
With the bailout,
everyone will be paying for the irresponsibility of those who created this situation.
Think of the aftermath from a hurricane; when the government steps in and gives money to people who built their houses along the coast, everyone across the country ends up "subsidizing" the lifestyles of those who have chosen to live on ocean-front properties.
A "financial hurricane" is going to hit our economy; we can let those who have been living the "ocean-front" lifestyle pay for
their excesses, or we can pass the bailout package and make
everyone across the country pay for what only some benefited from.