In this post, as usual, we stand behind nothing that you will read. We have no special knowledge, so we are just guessing. Still the voice of humility economics department makes its offical statement.
The financial establishment has, through various mistakes, played itself out. Therefore, it needs a bailout. It needs this for two reasons.
1. it needs the money.
2. One very important and overlooked reason is because the money it uses to keep Congress in its pocket is gone, so it needs more money to keep Congress in its pocket.
Now, I'm sure there are those of you out there who touchingly believe our national legislature full of gentlemen and ladies (or that absurd construction, "gentleladies") who could never be bought. There are some, but they are few and far between.
The Republican, aka "the Stupid Party," are as horrible as the Dems. For the last eight years they have acquiesced in all the foolish spending of the prior administration. I would never appeal to their sense of honor as it would be foolish to call on something that does not exist.
No, the appeal is to their self interest. Any support of the current plan to save the nation will make failure bipartisan, but not success. This is no win.
So you must think I have no goodwill and wish for the plan's failure. Yes. Again, there is no claim to authority. Our guess is that the plan will not work and any success will be coincidental. Sooner or later every penny will have to be paid and even if the stars in their courses conspire to bring us out of our current downward spiral, it will just be postponement. Everything that has caused our problems must eventually be liquidated. whether it's all the goods on the docks or the social theories that lead us to believe that physics professorships not in proportion to every race and gender group is injustice.
If the Elephants can brave being called ractionaries and every other epithet until it starts to smell good because of the failure of the progressive model, maybe there would be some hope. There would be more if they actually came to believe.
In truth, we are not optimistic.
Moi, il faut cultiver notre jardin.