Rather than allow the economy to collapse under its own bloated weight, then allow it to rebuild itself after putting smarter regulations in place, the U.S. government plans to take on billions in bad debt in a massive bank bailout.
Here is the big joke that the government is telling to justify the plan:
The government would then be able to sell the assets back into the market when it wanted.
Yes, the debt nobody wants now is likely to fetch a great price in the future. Right. No, what is going to happen is that whatever the government pays for the bad debt is going to be taxpayer money gone to waste. Whatever meager payments the debt does generate will probably be sucked up in transaction and administration costs.
Something needs to be done about the economy, but the government should focus on building a stronger economy, not bailing out the institutions that made it weak in the first place.
New bailout planned | CNN