Is the US bailout the largest heist in world history?
I'm baffled by the American reaction to a proposal to buy 5% of the country's entire GDP worth of privately held debt, drive the national debt to over ten trillion dollars -- that's $10^13, or about $1560 for every person on the planet -- and not help a single person that actually needs the help in the process.
With the US deficit already running at half a trillion dollars per year under Conservative-style mismanagement, this move will drive that number up dramatically. With Canada's GDP being about $1.3 trillion, the US deficit this year could well equal 100% of Canada's GDP. Anyone who claims at this point that who is in charge of the government has no bearing on the state of the economy needs to take a good long, hard look in the mirror.
While injecting $700 billion (plus or minus $700 billion) into the economy sounds great, one has to wonder where it will come from, and where it will go to. Near as I can tell, it will come from the people across the country who have lost their homes, and go to the people who took them. But don't worry: the trickle-down effect will save the economy!
Canada has gone from boom to bust in just two years of Conservative government, with only Alberta's oil boom keeping Canada out of a textbook recession. Just a month after taking office, CMHC under Conservative guidance started permitting longer mortgages that would drive Canadians deeper into debt. That has changed very recently, but it shows the mentality currently at the top in this country.
Posted at 11:02 on September 26, 2008
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