Facetious
Moderated
"Government Made the Mess"
by Christopher Grey
10/03/08
"What if someone were to tell you that our government, without any oversight, was going to spend hundreds of billions of dollars of taxpayer money to buy near worthless items on eBay(EBAY Quote - Cramer on EBAY - Stock Picks) at whatever price they believe is appropriate, using the justification that it will stimulate the economy?
I believe this would seem pretty ridiculous to most people. Yet, the government's current plan of buying extremely hard-to-value toxic assets is remarkably similar to the eBay example. Here's why.
Although bankers and politicians swear that the financial markets will be saved and credit markets stabilized by this plan, no hard evidence really exists to support their claim. They are really saying "just trust us" like a used car salesman trying to explain why you don't need a warranty on a 1977 Ford Pinto. Whenever I hear that phrase, especially from politicians, I reach for my wallet.
The bankers and politicians say that "smart" people like Hank Paulson and Ben Bernanke will protect the taxpayers' money and, if we don't spend this money buying troubled bank assets, the stock market will crash, credit markets will freeze, and we will enter a second Great Depression.
Of course, Paulson and Bernanke are the same geniuses who got us into this mess in the first place, but now they are somehow the most qualified to get us out of it. That doesn't make any sense to me."
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by Christopher Grey
10/03/08
"What if someone were to tell you that our government, without any oversight, was going to spend hundreds of billions of dollars of taxpayer money to buy near worthless items on eBay(EBAY Quote - Cramer on EBAY - Stock Picks) at whatever price they believe is appropriate, using the justification that it will stimulate the economy?
I believe this would seem pretty ridiculous to most people. Yet, the government's current plan of buying extremely hard-to-value toxic assets is remarkably similar to the eBay example. Here's why.
Although bankers and politicians swear that the financial markets will be saved and credit markets stabilized by this plan, no hard evidence really exists to support their claim. They are really saying "just trust us" like a used car salesman trying to explain why you don't need a warranty on a 1977 Ford Pinto. Whenever I hear that phrase, especially from politicians, I reach for my wallet.
The bankers and politicians say that "smart" people like Hank Paulson and Ben Bernanke will protect the taxpayers' money and, if we don't spend this money buying troubled bank assets, the stock market will crash, credit markets will freeze, and we will enter a second Great Depression.
Of course, Paulson and Bernanke are the same geniuses who got us into this mess in the first place, but now they are somehow the most qualified to get us out of it. That doesn't make any sense to me."
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