Bailout Bonanza

  • Commentary: Bailouts will lead to rough economic ride – – “I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay. “
  • Ron Paul: This Bailout Won’t Be the Last – The Home Front ( – “Before the Depression, [the government] generally allowed these kinds of problems to unwind. They were very severe. They would last six months or a year—a lot of liquidation of debt would be wiped off the books. And then it would go back to work again. What we’ve been doing now—especially since 1971—is preventing the real liquidation of the malinvestment and the excess of debt… If this process continues, we’re going to own General Motors and Ford, then we will have to own the airlines. We are socializing our country without even a vote by the Congress. It’s a horrible situation.”
  • Senator Bunning Declares The Free Market Dead – “My great grandchildren will be saddled with the estimated $1 trillion debt left in the wake of this proposal. We have gotten to this point because nobody has been minding the store. Both Secretary Paulson and Chairman Bernanke should be held accountable for their inaction – and now because of that inaction – the American taxpayer is left with bill.”

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