All posts by rightgull

Bailout Fund…Does it Matter?

At this point, after this administration has inflicted so much damage to our economic systems, does it really matter whether or not Obama supports a ($50B) bail-out provision, with respect to the Senate’s latest financial reform bill? Absolutely not.
Sure, $50B is a lot of money…ok a ridiculous amount. It may perhaps be a good estimate for any amount of third-party funds needed to adequately liquidate distressed financial firms, in the event of a collapse or near collapse. Equally significant might be matters of funding (firms ripe for collapse v. tax payers) and timing (fund now or later). In the broad scheme of things, however, and despite whether or not this provision goes through, this will likely prove to be yet another example of how pandering, indecisiveness and ignorance on the issues will have siphoned value out of our system – much more than the extent of any notional consideration, such as $50B in this case.
By not allowing the markets to quickly re-set themselves, in conjunction with further instilling the belief no one should ever lose money in the markets, this administration continues to wreak incalculable financial and economic damage. Just as the sporadic implementation of various housing entitlement programs keep would-be borrowers/buyers on the side-lines and waiting for some degree of market sustainability, Obama’s lack of conviction on just about any legislative issue facing the broad market continues to keep people “out of the game”. I’ll spare any audience I may have with an explanation on how dramatic the velocity of money impacts the economy. To date, economic views and policies of this administration seem to assume completely isolated scenarios, which can’t affect the economy at large – there is an apparent unwillingness to think more than one step ahead with any economic initiative.