...damn...
Been trying for a hour to think of one way the bailout could have saved our economy, but from the last week, we can see it isn't working...
Was worth a try, was supposed to stall Armageddon, guess that didn't work...
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3 comments:
I think that that is not entirely fair based on the circumstances, The bailout was not expected to magically cure the markets and suddenly bring stock prices up to where they were before, but instead to protect against more bankruptcies and stop the slide as much as it could. The market is still going down but that could be attributed to some extent at least to shaken investor confidence and the large number of people that seem to be trying to get out of the market quickly. As long as more people are trying to sell than are trying to buy, the market will go down so maybe to the extent that it did not give people enough peace of mind to stop selling the bailout did not succeed but i dont think we will be able to tell for some time whether the bailout was a good idea or not.
Bryan is right here. 700 Billion dollars have yet to start circulating, and it may take the better part of a few years to get that money circulating. This is a long-term solution, which is frustrating for short-term investors who want to see immediate gains.
How can the 700 billion do anything?
Either:
a) the money was taken from the taxpayers, and thus was taken out of circulation.
or
b) The government created new money which will cause inflation. (what really is happening)
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