Tuesday, September 30, 2008

Regarding the Bailout

This is what my friend Scott had to say to me about the bailout:

"Say you have a lot of money, and you decide you are going to loan it out so you can make interest on it. So you make some bad decisions in who you loan that out to, basically loaning it out to people who don't really have the means to pay you back. And you furthermore start to trade your debt obligations like stock on the open market, and that makes you money, so you start to loan out more money out than you should. Because, "hey, the more money I loan, the more it looks like I'm worth a lot since the future income on the interest keeps inflating," so you loan out more than anyone ever should, and you trade even more debt obligations on the market, and then finally it fails and bites you in the behind.

Well, in that case, it is not my responsibility as a taxpayer to bail you out of your bad decisions, brought on by your greed."


I totally agree!!!

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