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09 February 2009

Bailout Money Pit

The bailouts don't seem to be having the desired effect, but the government keeps pouring money into the system. The economists that say this is just a normal recession are not from this planet.

When discussing the stimulus package, Congressman educated everyone on how much a trillion dollars is, how high the bills would stack above the earth, how many times the money would circle the globe, but I never did hear how he liked the stimulus plan.

Currently the government has issued bailout money or loans totaling 9.7 trillion dollars, so far. That is enough money to give $1,400 to every human being in the world, it's 13 times the cost of the Iraq and Afghanistan wars and it would pay off 90% of all the mortgages in the U.S.

Now it seems that since it was the housing bubble that started this mess, using the money to pay off mortgages would have been one heck of a stimulus package. I know I would be more willing to spend if my mortgage was paid off.

Ten trillion dollars is almost as much as the U.S.'s GDP. What happens if the businesses the government is loaning money to still go bankrupt? That money never gets repaid, what effect does that have on the country?

Now the government is thinking about forcing GM and Chrysler into bankruptcy so they can be guaranteed to get paid back. Just a couple of months ago they were debating loaning them money to keep them out of bankruptcy. Of course, they did loan them money and now they are doing what everyone said they should do in the first place, let them go into bankruptcy. This is the same Congress that is trying to save the country.

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