What to make of the government bailout? It finally passed, you know. I think Bushie was standing on the floor of the House to sign it as soon as the gavel fell. Sad, really. Very sad.
It is sad that our economy and our country have come to this. I personally believe that something had to be done. Reasonable minds can differ on what we think is and was necessary – but to have done nothing – would have spelled certain disaster for our economy. Without capital, banks cannot lend – period. If banks don’t lend – then the economy stops. Not too many companies and corporations (yes, those evil – greedy corporations – that provide JOBS to the masses) are capitalized enough to operate without debt. So – without lending (without debt) the economy comes to a screeching halt.
We can all be self-righteous – and claim that everyone should live as Dave Ramsey would have them to – debt free. But the reality of an economy that immediately has no lending capacity – well, it’s brutal. It’s like a plane – slamming into a mountain. Or, to use an analogy that many will understand – it is like poison ivy. You see – right now – our economy has rubbed itself all up in the poison ivy. That nasty itch producing stuff is all over us. But just like it takes a few days for the allergic reaction to begin – so today – we find ourselves in that pre-reaction stage. People are starting to feel it, but not enough to think that $700 billion is needed. But the itch, the nasty – oozing – spreading itch is coming. It’s coming – even with this bailout bill. Just wait. It’s going to be painful. And the $700 billion bailout bill is like a big, fat steroid shot in the economy’s butt.
If you like reading financial news, read this article by William Isaac. He is smart – and used to run the FDIC back in the day. He thinks the bailout bill stinks and that there are other things we could have and should have done. He’s right. However, ultimately – something had to be done. Let’s just hope our next president has the sense NOT to raise taxes.
Ultimately, this is all in the hands of the Almighty – and that is a comforting thought – as we find our hope not in government and presidents, but in Christ – our Savior.