Thursday, December 14, 2017

My plan to save the taxpayer $700 Billion and the country, to boot!

Posted on December 1, 2008

Recently, I have been really troubled by all the “bail-out” talk and have been able to concentrate on little else. I have been trying to get my mind around the $7.5 trillion number and just haven’t been able to. I feel that there has got to be a better way to save the economy than throwing all this money at losing businesses.

There is talk now about another economic stimulus package. Congressional leaders and President-elect Obama have said they are committed to it, but a price tag hasn’t been worked out yet. I read a report today that 43 states are facing deficits that could exceed $140 billion over the next two years so they are sure to be on the list of recipients. So, if I do my math correctly and add the amount of the last economic stimulus package to the new “needs” the total exceeds $200 billion. Of that money, it is estimated that the states would use $136 billion for infrastructure projects.

On top of that, we have all the banks, automakers and businesses that need saving which has been estimated will cost you and I another measly $7 – $7.5 trillion dollars. In a previous post I tried to demonstrate just how much money $7.5 trillion dollars is. If you didn’t read it, please do so here.

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Bail-Out

Posted on November 26, 2008

Where do I start with this? It seems the word “bail-out” is the most popular phrase in government these days. While our economy continues to slide down the hill into the abyss, the government insists on running up the dept in order to “stimulate” it. I just saw one figure that estimated the total costs of this “welfare” package could reach or exceed $7 trillion dollars. That’s correct, $7 TRILLION DOLLARS! Let me put that into perspective for you; 7 trillion seconds ago the year was 211 B.C., 7 trillion dollar bills lined up end to end would wrap around the globe more than 27,241 times, 7 trillion dollar bills weigh more than 7,709,251 tons!

Does this “bail-out” make sense to anyone else but those writing the checks and those with their hands out? I don’t see how giving money to companies, who’s poor management and leaderships team have put them in their current position, is going to solve anything. All I see is us, the taxpayers, investing good money in a bad deal. If management changes aren’t made immediately in these companies, what is to prevent them from ending up back at the well asking for more? In one word, the answer to that question is “nothing!” We have already seen this with AIG. The problem with this approach is we will have so much money invested in these companies that if they do continue to lose money, we will not be able to let them die on the vine like they should but rather will be required to invest more in the hopes of preventing the loss of our initial investment of billions. The phrase for this is “throwing good money after bad.”

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