There is nothing else in the news to write about lately because all anyone can talk about is the next bank that is being bailed out and who is next on the list. Pretty soon the government will be in a deep hole in debt and our financial sector will not be better off. Notice the Stock Market the past two days, with all of these bailout wouldn’t you think that the market would be going up not down?
What we should have done is let them fail? The American Dream is being transformed into the American Pillow. The American Dream allows you the freedom to become as rich as you can with no one in the way. That means that if you fail, no one caused you to fail but your own. Now it is arguable whether the government caused this problem or not, which I am pretty sure they are most of the problem here. They then bail out these guys.
Some could argue that if the government caused it then they should fix it. This is inherently false because the government isn’t fixing them. The government is deciding to fix them with our money. They should start a fund and say taxpayer if you want put your money in this box and this will be the bailout fund. We will then see how much people want it.
The next argument would be made that well if we did that people wouldn’t do it and then once they all failed the taxpayer would have wanted the bailout. This is a nanny state argument that I do not agree with. I believe that when someone makes a ice cream stand in Alaska and no one goes there they should fail. If you make bad decisions, you fail. When you fail, you learn how to make the right decisions.
We are teaching the bank executives and the Fed to just keep doing the wrong thing.