WHY is the bailout bad?

[jbrace]

I'm trying to explain to my roomate why the bailout is bad.. I understand that its gonna cause inflation and the market needs to take its natural course. Also we don't have the money to support this bill. What else should I tell him? he's also bias about helping the market because his parents just lost 10,000 in their retirement fund.. Can you give me advise on what he should tell his mom to do, and why retirement funds are tanking?

[Kade]

It's not the government's job to allocate your money to these idiots, who squandered theirs.

[JaylieWoW]

I just had the significance pointed out to me on the forums (see Econ & Sound Money).

Basically, the Fed is aware how badly inflated the dollar is about to become. The significance of this bill was enabling an asset grab for whatever prices (remember they hold the same money we do) so that when the dollar does tank they still have assets of some value.

Ask yourself (like I did) why this bill, why not just silently inflate (which most people don't really understand)? Once you ask that it all starts to add up.

[luke-gr]

Like Kade said, this is a huge moral issue for many. The government has no right to borrow money in our name and inflate our currency to protect a group of people.

Stocks come and go. Markets react on emotion.

[Sematary]

I'm trying to explain to my roomate why the bailout is bad.. I understand that its gonna cause inflation and the market needs to take its natural course. Also we don't have the money to support this bill. What else should I tell him? he's also bias about helping the market because his parents just lost 10,000 in their retirement fund.. Can you give me advise on what he should tell his mom to do, and why retirement funds are tanking?

Numero uno: It is completely unconstitutional

Numero dos: Not only will this put our nation further into debt but is essentially the equivalent of placing a bandaid over a gushing artery. It might hold back the flow temporarily but when it blows it's going to be bigger and last longer. Tell your friend to look into the reasons behind the length of the great depression and he will discover that it was government intervention (socialism) that caused it to last as long as it did. It lasted AT LEAST twice as long as it otherwise would have and the only thing that brought us out was WWII.

So - explain to him that if the bailout doesn't happen then yes, we're going to see some hard times but they should be relatively short compared to what happens if the government intervenes in the markets to this extent.

[Kade]

The economy will likely be very bad for awhile. We need this, as a country, we cannot survive inflating ourselves so much, this let's out the steam, and we can regrow real assets, and real economic stability. Hold onto your jobs, save money, and hope for the best.

[Sematary]

Don't forget to remind your friend that his parents money isn't lost unless they sell. So yes, on paper, they've lost a bunch of money but if they sit on their stocks (the good ones) until everything shakes out, they'll get it back in the end. Might take a few years though.

[enjerth]

The simplest way I can explain it is this.

The government has been manipulating the market to push for economic growth. This economic growth is unstable, as it doesn't have the backing of the REAL market. This growth is artificial and, to meet the true market of simple supply & demand, is stumbling backwards right now. The bailout is an effort to push for more economic growth, propping up the teetering economy more so that we don't see a recession. All this leads to more economic instability AND the devaluing of the dollar by increasing the money supply for the purpose of multiplying credit. Credit so that we Americans can dig a deeper hole of debt to these banks.

Ok, so that wasn't the easiest way.

Basically, we've seen a great deal of overgrowth in the economy, and the natural recourse is recession. But the mission of the Federal Reserve is to push the economy forward, flat on it's face, so that's what they're doing. They're trying to maintain and even exceed the current level of economic growth instead of allowing a natural recession bring the economy to true market levels.

[lasenorita]

You're Going To Destroy A Worldwide Economy! (http://www.youtube.com/watch?v=YBVB1Uc0nko)
Ron Paul

His full remarks regarding the bailout can be found at C4L (http://www.campaignforliberty.com/blog/?p=642).

[aravoth]

It's not the government's job to allocate your money to these idiots, who squandered theirs.

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