Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.
Please click HERE to read a synopsis of my view of the financial situation.

Friday, September 5, 2008

Bail Everyone Out?

Bill Gross, Chief Executive of the worlds largest bond dealer, Pimco, wants government to bail everyone out. (Maybe indicator Pimco has issues?)
Automakers want for starters, a 50 billion dollar loan to help
China and congress want Freddie Mac and Fannie Mae to be bailed out, to the tune of 1 trillion dollars.

It takes conviction and leadership to do the right thing, and that is, let capitalism work, don't socialize businesses.

What no one seems to get is US government can't bail everyone out. There will be a "payment" for debt one way or the other, either inflation, interest rates, deflation, something.
We can't just print up trillions dole it out, and not expect a backlash worse than if we let capitalism work. Let Capitalism weed out the weak, stupid, and unlucky. The strong survive and get stronger. You want socialism or communism, move to France or China.
Or maybe move to Pakistan, where the government made it "illegal" for stocks to go down.

Update 9/5/08: Now US government needs to start bailing itself out, the US Highway Fund needs a bailout.

No comments:

Post a Comment