Monday, September 22, 2008

Get Over It

Check out the post here regarding the bail out at Bergen Jersey foreclosure blog here. Tom gave an excellent synopsis. Now after that great review of the proposal lets take a look at this article titled Be ticked off - but get over it from CNN Money. The threats are constant that what ever happens will be worse than what will happen if the huge government bail out falls through. Lets take a look -

So once the blind rage subsides, people will hopefully take a long-hard look at what the government has proposed and come to the realization that doing nothing to rid the nation's banks of all the poisonous mortgage assets on their balance sheets would be far far worse.

"Taxpayers have every right to be angry because we've gotten into this mess by a combination of irresponsible behavior and lax regulation," said Chris Probyn, chief economist with State Street Global Advisors in Boston.

"However, if you look forward, by letting those responsible pay the price, there will be a spillover effect and the economy could go into sharp and protracted recession."

"I don't think the government had a choice but to take these bad debts of the banks' books," said Tom Higgins, chief economist with Payden & Rygel, a Los Angeles-based money management firm.

"What makes capitalism work is borrowing and lending. The problem, without this bailout, would have been you would have condemned the economy to a period of halting growth at best," Higgins added.

Nice advice Tom Higgins - capitalism working great so lets have the government and taxes bail out the industries. There is a lot that does not make sense with this proposal. There is so much contradictory information being thrown around. Since the public aspects of the plan are very vague people are reading into things that they would or would not like to see.

That line of "get over it" will probably thrown around over and over again. This upon the constant threat of act now or things will be devastating. Maybe it will be maybe it won't. But this is also another case of consider the source.

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