What a load of bollocks

Honestly how are we meant to believe Mr Bush, Bail-out 'vital to easing crisis'

So the worlds largest economy (which incedently is also the worlds most indebted economy) get's the hiccups, and suddenly the Government of the USA starts pumping money into it, too stabilise it?

I have heard several justification for this over the last week, but my favourite has to be along the following lines,
- The fall of the large american company XYZ would have a negative effect on the world economy.

Now when did the US ever give a shit about the world economy other than when trying to leech as much as it can out of it.
I can't understand how taxpayers in the US can watch as the Government pours it's money into companies who have been swindling those same tax-payers into mortgages they cannot afford.
Sure the fall of these large financial institutions would probably send the US economy into recession, but isn't the idea behind capitalism and free markets, that if a company is unsuccessful it should fold and a new one will take its place. Until now I saw a sort of darwinism in the free market, survival of the fittest. We have just seen the dinosaurs hit by a meteor, and now we're trying to fix them up and get them on their feet.
Now is should also be known that when other Economies have faltered, and reacted in this way, the US was normally the first country to chastise them for intervention in the free market. The normal result in weaker economies was that American capital flowed into these markets instead of local capital, and the economy there after sent all profits over the border. That is of course, only when the USA don't invade. A county that managed to buck this trend, was Argentinia when it defaulted on it's foreign debt, their crisis also brought on by a credit crunch.
Now the US economy is effectivly defaulting on its internal debt.

So why does the US Government not want to follow what it preaches?
The US Government claims that the fall of their largest financial companies would send the world economy into turmoil. Well certainly there would be a slowdown.. and of course the US was very clever creating a Debt system based on it's own dollar, so any countries that loaned to the US in dollars have alot to loose if the American economy goes downhill. However, the US likes to overstate its position, it helps to scare smaller economies into doing as it asks. If the US was to deflate its debt, by devaluing the dollar, it would also open it's financial sector to takeovers from abroad or to use the US euphanism, it would open it's financial sector to Foreign investment. This would then leave the US with reduced control over its financial sector.
Alternatively the US could honour its debt, and enter a recession, where the old companies would die, and new companies would take their place. In 10 years, if the Chinese haven't overtaken them by then, they could emerge without the deadwood of con-artists, swindlers and ambulance chasers who caused the current crisis. Their markets would, with proper management (not intervention), be rebalanced, and the US could get a fresh start. I think that would be a positive thing for its overworked underpayed, living on credit masses.

There is of course another somewhat more radical suggestion as to why the Government would bail out the old, large financial institutions with Tax Payer money. The old boys club. What would they do with all those Ivy league boys if they all suddenly had to go on the dole. They're bloody useless without their connections.


Personally, I think the US could do with cleaning up their economy. Take a look at the Environmental changes they could make if they had to start again. They could remove the populace from their dangerous credit addiction. They would have to invest in education. Most importantly, they might have to drop their protectionist import restrictions and wage deflation and actualy start practicing what they preach.

Like my mum always told me, it's better to take the plaster off quickly.