Quote:
Originally Posted by randolph
Conservatives are highly critical of the bailouts. Since you seem to be an expert on this issue, what do you think the consequences would if there was no bailout by the government? What would happen to the economy, jobs, medical care, education, food supply, energy supply, a place to live? What would happen to credit, loans, financing food production, construction, infrastructure?
Just wondering  |
It would be hard for sure. We would have to make some tough decisions and reform to actually fix the problem. No where have you heard anyone say how we fix this so it doesn't happen again. Go back to the gold standard. Balance the budget. If the government does anything it should make America a profitable place for companies to produce again. Then we can start to export and work down our debt. Then we could take care of the economy buy back our country and lower taxes. People will again have more money for medical care, education, food, energy and houses.
The worst thing that we can do is continue bad policies that put us in this mess in the first place. You can't solve the problem of inflation, which is the creation of money and credit out of thin air, by more money and credit out of thin air, and not changing policy. We need to get back to free-market capitalism. Americans need to save more and not buy everything on credit. If lending companies were forced to make realistic loans by the market, then Americans would save more.
The Chinese work hard and save, and they're buying up the world. But we borrow and spend and consume, and now it's caught up to us and it's undermining our whole system.
It would be painful, but it wouldn't last as long as what BO is doing. BO is propping up a failed system so the agony lasts longer. He's doing exactly what we did in the depression.
BO is trying to prop up home prices. You want the price structure to adjust and let the price of houses to go down. Price fixing does not work.
It would be a bad year, but BO's way will be a bad decade... at least.