03 Oct 2008

"Bailout Doesn’t Resolve Fears on Credit, Economy"

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So announces CNBC the day the bailout passes. So let’s see: We’ll be generous and say the bailout only cost $700 billion, even though this thing actually is more, and even though the precedent will allow them to spend trillions when all is said and done. Also, we’ll be generous and say that there was a 3.5 hour window in which people thought this might actually have fixed things, even though people already knew going into today that the problems would still fester.

So, even with these two generous assumptions, that means the government just committed itself to spending $200 billion per hour of postponed anxiety. Sounds like a good deal. Remember, “Doing nothing is not an option.”

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