What seems to be avoided by everybody is that a 700 BILLION bailout would just be the tip of the iceberg. IIRC that is 5% of the actual market or 1400 TRILLION dollars.
Considering that ALL of this is just theory so far and the 700 Billion is real, taxpayer dollars, Congress should not be any rush. Back when I owned an automoblie dealership it was illegal to run a business on a net 90 basis. I wonder when that changed. When I took over the business it was floor planned ( net 90 on inventory ) but I turned around and started paying for my vehicles when they hit the ground. When I sold the business, EVERY bumper on that lot was paid for.
If you have to take a net 90 (or 30, I suppose) to cover payroll, you are WWWAAAAAY over leveraged. OPM can be overdone.
I think it would be funny if the 98% or so that pay their mortgage on time and are not very happy about paying the mortgage for some deadbeat start skipping their payments. Why not? Maybe thy will get a bailout too.
If the banks go, they go. Tough on the banker. If some business that lives of OPM goes, let them go. Tough on that business an it’s employees.
Not EVERY bank will go, the well managed ones will ride out the storm. Not every business will go, the well managed ones will ride out the storm. Then Congress can use the survivors to define what ‘well managed’ means and write laws to promote regulations that make it easy to manage well and hard on those that steal or mismanage.
The bailout is temporary and will have to be repeated ever so often. Especially when the pack sees how well crooks like Buffet do;
http://hubpages.com/hub/Warren-Buffet
Steal a little money, you go to jail, steal millions and you get on the cover of Times. Steal Billions as Soros did and you can control nations. Not sure what the reward for stealing TRILLIONS is, but we are about to find out.
Sorry, Winnie;
“Never in human history has so much been stolen from so many by so few.
