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Reply #17: Economic vs. Financial bailout???? [View All]

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Tansy_Gold Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-29-08 02:52 PM
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17. Economic vs. Financial bailout????
Earlier this morning I saw where someone had posted something about the distinction between a financial and an economic bailout, with the suggestion that the bill being voted on was solely a financial bail-out and not economic.

I should have bookmarked the thread but was in between other tasks and lost it.

It seems to me, however, that whoevever that poster was may have been onto something. Because I, too, in my always uninformed mental exercises, think this particular program would NOT have helped the economy but would ONLY have effected a continuation of the vast transfer of wealth from the productive segment of the economy to the parasitic financial segment.

Some defenders of the bailout are suggesting that failure to pass the measure will tighten credit to the point that major corporations -- GM, GE, ??? -- will not be able ot borrow the money to meet their payrolls. This seems disingenuous to me, since I always thought a company of any size ought to be able to meet its payroll out of operating cash flow. If it has to borrow money to make payroll, it's not a very stable operation, is it?

I go back to the personal analogy: If you have to borrow money to pay your credit card bills, you need to cut back on your spending or find some more income. DO NOT continue to operate on that basis.

Tansy Gold, who is trying very very hard to follow her own advice.

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