Why I don’t mind the bailout bill
October 14, 2008 – 2:01 pm
My old employer, The Providence Journal, has been kind enough to publish another one of my Op-Eds. This one lays out why I think the bailout bill, or TARP, is needed. It’s a little behind the curve, but that is because news travels faster than the ProJo’s publication schedule.
I know many who read OA might not agree. And yes, I’m scared of hyperinflation, or something similar. But, I think deflation is worse and that is why the bailout is necessary.
I’m open to changing my mind. Please post your arguments. I don’t know what we are going to do about the viability of the dollar long term. I just don’t think massive unemployment is a strong choice or any kind of choice.
More on this topic
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Ending the Credit Crisis: The “Money Morning 15-Point Plan”
(Investment U, 9/25/08)
NY Fed Index Of Coincident Economic Indicators Shows NY Weakness Continues
(Zero Hedge, 5/27/09)
5 Reasons Stocks Will Keep Falling
(The Wikinvest Daily Angle, 10/9/08)
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5 Responses to “Why I don’t mind the bailout bill”
But for the prudent saver, admittedly there are few - isn’t hyper-inflation far worse than deflation? If I have been carefully putting away dollars while others have been taking out loans left and right, inflation will destroy the value of my savings (bad) as it lowers the value of the future dollars that debtors must pay (good for them).
Wouldn’t it be better to say that in a society wild on credit like ours has been, inflation is better than deflation but only because fewer people suffer from it? For a nation of thrifty people, deflation would be far more tolerable, no?
By CB on Oct 14, 2008
Deflation is worse? You lose credibility when you say that. Inflation is Weimar, Zimbabwe, Argentina. All of these governments ended or are on track to end horribly. Rioting/looting unimaginable suffering-all these are the children of hyperinflation. Once the dollar is gone, massive unemployment will result. It will occur in either scenario.
The bailout simply transfers power to unelected theives like that bastard Paulson. At least with deflation, a dollar will buy something, because its scarce.
The US only has experience with depression/deflation. We havent experienced government ending hyperinflation.
By Fred on Oct 14, 2008
The biggest problem it does appear to have unfroze the markets. You can not force the banks to lend and it is possible this infusion is making it worse casue it is easier to get money from the goverment then the banks.
By Robert Muncy on Oct 15, 2008
Prepare for the worst. We will look back and regret the time wasted minimizing the tsunami warnings when we should have been running to higher ground. My point: Bank locally. Get a bicycle, walking shoes, and use them. Go light. Know who loves you and get near them. Love people. Times cannot always be easy. Gear up for these tougher times and be cheerful. Pray! Listen to God like never before.
By SacrameantoPine on Oct 16, 2008
IM A AUTO WORKER AND WE BUILD GOOD CARS ITS THE CEOS WHO HAVE TAKEN THE MARKET TO THE BOTTOM BY TAKING TO MUCH OFF THE TOP WE WORK HARD FOR WHAT WE HAVE AND WE DO HAVE TO MANY BOSSES…. YOU DONT HEAR ABOUT BALL PLAYERS MAKEING MILLIONS AND CANT PLAY. WE BETTER STICK TOGEATHER OR ALL WILL BE FOREIGHN SOON BET ME
By JACK DUBE on Dec 16, 2008