My conclusion was, a lot of money seem wasted. It seems that politicians invest in the great picture which could be fine on the long run… but they never stay in power long enough to accomplish the plan and the following gov’ doesn’t follow up.

I also agree that it is confusing when bills are mixed up and the media mishandles the situation. I should also point out that all riders are not bad, particularly if one of them happens to fix the AMT.

I also think we can’t have it both ways. We want lower taxes, but we oppose anything that “costs the taxpayer”. Some of those “costs” are lost tax revenue, from lowering taxes or creating tax breaks.

I think we’re bring distracted from the true problem here – this ridiculous bailout bill.

I know that was all a little off topic but I had to get my point out.

Congress won’t allow that to happen though because people would lose jobs, some companies would fold, and pension plans and retirement funds would lose a lot of money. Many people would need to put off retirement for several more years. Of course, these things are already happening, but the effects would be magnified, and they don’t want to be held responsible for that.

Allowing the market to correct naturally would be viewed by the media and many people in the public as “inaction” and public outcry would force the government to act… bringing us right back to where we started.

Cutting the fat is huge. I was at an event with Senator Ben Cardin (of Maryland) and Knight Kiplinger (founder of Kiplingers personal finance). Knight stood beside Senator Cardin, and he made a fantastic point. Our perilous economic situation is due to a lack of savings. He said it wasn’t only individuals who fail to save, but Capitol Hill and the White House. He stood by the Senator and said these guys need to act like adults and get their house in order. Gutsy comment, but so true.

As far as the bailout, it won’t work. It might help, but it won’t take us out of this mess. In fact, there is a strong case to be made that government intervention in the economy drags out the inefficiencies that recessions get rid of.

Most think the Great Depression was a fault of capitalism and it was the government that brought us out. No. The government took what would have been a difficult recession and turned it into a depression. The Fed tightened money when it was needed and the Smoot Hawley tariff created a worldwide economic battle that caused economies to shed jobs in large numbers. Later after FDR took office, he tried price fixing assets and goods, and this made things worse. Of course, a strong case could be made the huge leverage and inefficienies of the thirties may not have come about if not for the Fed.

If we just let the market correct, this would be painful. We would see 10% unemployment and probably further losses in the markets. However, we would get through this much quicker.