Tuesday, September 30, 2008

The Bailout and the Market

Due to the massive economic losses that have occurred during the last few weeks.  I am an Economics student and believe wholeheartedly in Smithian Economics.  I believe that the government should stay out of the economy and the market at all times...except now.  I know that the invisible hand would be able to balance out the economy eventually but because of the absolutely ridiculous policies enacted by the Clinton Administration, mostly in 1992, I think that the United States, and much of the Western World will lose far too much wealth in the process.  Many people ask how is this going to help Main Street when all it looks like it is doing is helping Wall Street.  The issue with this is that if this 700 billion dollar "bailout" is not a bailout at all.  This 700 billion dollar loan will enable the world's credit market the ability to be freed up and let citizens and small businesses, the ones located on main street, the ability to pay their workers.  You may ask how freeing up the credit markets will enable small businesses the ability to pay their workers.  The issue is that without the ability for businesses to access their lines of credit they will be unable to substitute their cash flow issues while their accounts are being balanced by the customers who owe them money.  I will get far more in-depth in my later blogs.  But welcome to the new age economist, and how we as the young people of this country can take back our economy from the socialist and populist democrats who are throwing this country into a deeper and darker recession through taxation, by the man who could be our next president....the messiah....Barack Hussain Obama.

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