Comments on: Pass the bailout, save the world http://www.joetaxpayer.com/pass-the-bailout-save-the-world/ Financial Commentary For The Average Joe Thu, 09 Feb 2012 00:23:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Augustine http://www.joetaxpayer.com/pass-the-bailout-save-the-world/comment-page-1/#comment-1473 Augustine Wed, 01 Oct 2008 22:31:17 +0000 http://www.blog.joetaxpayer.com/?p=550#comment-1473 And hopefully it won't pass either. It doesn't matter whether there's any "profit" to be made or not: money will be siphoned out of Joe Taxpayer's pockets. Moreover, he won't be getting shares in an enterprise, rather the profits, if any, will be dolled out to the black hole of the federal budget. This bailout is not a bailout of the financial sector, but a bail out of Pualson's and Barnanke's buddies. Small banks won't see any of the $700B, just the so-called too-big-to-fail banks, as though such a thing existed. Fire-sale or not, that's the value of the commodity at one moment. That's the market adjusting to given situations, specifically when securities have been overpriced because of the excessive liquidity that has been the case for the past 5 years or so. Only government can fathom a problem by injecting liquidity into the financial sector and when, the market attempts to correct it, injects more liquidity into failed investments. Make no mistake, this liquidity is coming from somewhere else. Either through taxation, when it's going to penalize the other sectors of the economy with healthy liquidity, or through inflation, when it's going to penalize all Americans by vaporizing the liquidity out of our pockets. Enough of expert opinion when both Paulson and Barnanke told us that bailing out AIG would be enough. Why listen to these guys about $700B when they don't have track record to show for? And hopefully it won’t pass either.

It doesn’t matter whether there’s any “profit” to be made or not: money will be siphoned out of Joe Taxpayer’s pockets. Moreover, he won’t be getting shares in an enterprise, rather the profits, if any, will be dolled out to the black hole of the federal budget.

This bailout is not a bailout of the financial sector, but a bail out of Pualson’s and Barnanke’s buddies. Small banks won’t see any of the $700B, just the so-called too-big-to-fail banks, as though such a thing existed.

Fire-sale or not, that’s the value of the commodity at one moment. That’s the market adjusting to given situations, specifically when securities have been overpriced because of the excessive liquidity that has been the case for the past 5 years or so.

Only government can fathom a problem by injecting liquidity into the financial sector and when, the market attempts to correct it, injects more liquidity into failed investments.

Make no mistake, this liquidity is coming from somewhere else. Either through taxation, when it’s going to penalize the other sectors of the economy with healthy liquidity, or through inflation, when it’s going to penalize all Americans by vaporizing the liquidity out of our pockets.

Enough of expert opinion when both Paulson and Barnanke told us that bailing out AIG would be enough. Why listen to these guys about $700B when they don’t have track record to show for?

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