Saturday, October 4, 2008

Solemn Farce

My 'contrarian' friends like Bill Bonner at the Daily Reckoning refer to the bailout bill that just passed Congress as a "solemn farce." (I don't really know him, but his writing has kept alive my skepticism of the alleged prosperity and economic health of the last decade.)

"It’s capitalism without the creative destruction. Capitalism with seatbelts, helmets, and airbags. Capitalism without bankruptcy. It’s like taking the crucifixion out of Christianity. What’s left is as empty and foolish as a Congressman’s head."

"Two weeks ago, Bernanke was asked by Barney Frank how much money he had available for this kind of rescue operation. He said he had $800 billion. Last week, he was lending it out at an average daily rate of $44 billion. Let’s see, at that rate, the Fed is probably about 5 days from going broke itself."

His final take?

"We gave our theory: that people come to think what they must think when they must think it. For example, there was a time when the United States really was a nation governed by laws. The steady rule of law helped it grow into the world largest superpower. But now, it’s got more debtors than creditors...and more people beholden to the government than free men. Now, people just want a quick fix; the law be damned."

We live in scary times. I don't know what to think about the bailout bill, but I am skeptical. We shall see, we shall see.

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