Monday, September 29, 2008

Bailout Fails

When Bush got reelected, I gave us three years before we collpased like the Soviet Union.

Looks like I was one year early.

I was wary of the buyout plan form the start. This administration has always been good to big business. After American Airlines had some financial trouble (because their planes were used in the greatest mass murder in this country's history) they were given 3 billion dollars from our government. American responded by raising fares, cutting food and overbooking flights. Good going, America.

Now thanks to deregulation, we had a housing bubble which kept me renting the last five years. I can't get a 500K house now for less than 8. And thanks to all those families defaulting on those loans, the housing market collapsed. Which means there are less houses for sale. Oh, and they took half the banks with them.

The banks that couldn't be bought by other banks turned to the government. And they responded with 700 billion dollars we don't have and a bill so full of holes Republicans wouldn't vote for it. It died while I was getting a haircut and the dow dropped a record 777 points. CNN has been saying "Great Depression" ever since. Which means higher unemployment at a time when I was getting back into the workforce.

But oil prices fell. Didn't take much, did it?

1 comment:

Cromely said...

Don't worry. Oil prices will go back up as soon as the bailout passes. The bail out mean a larger federal deficit, which means more foreign borrowing, which means a weaker dollar, which means imports get more expensive.

And since oil is traded in dollar on the world market, the impact is magnified.

In reality, this is not going to be a depressions. It may be a rough few years, but it won't be as bad as it was in the thirties. It probably won't even be as bad as the problems in the seventies.

But some sort of federal program is needed.