BAILOUT: America’s Financial Ruin
Patrick Wood - October 6, 2008
When push came to shove, Humpty Dumpty discovered the shortest distance to the cobblestones below: straight down.
Being quite dead, Humpty’s body is stinking up the whole neighborhood. The eyewitnesses call it murder. The coroner, bypassing the eyewitnesses, rules it an accident. The public clamors for taxpayer funds to clean up the mess. Congress passes a bill for superglue to be liberally applied to the broken pieces of shell. The courts finally rule that the eyewitnesses are guilty of hate-speech. Contractors who administrate the reconstruction project get rich.
And so goes the circle of life. Makes no sense, does it?
The global economy, including its stock markets and banking system, is a decaying, dead corpse in process of a massive credit deflation. Until it hits absolute bottom (wherever and whenever that is), no life-support system will help. No government bailout at taxpayer expense will help. No nationalization of body parts (e.g., Fannie, Freddie, AIG) will help.
Nevertheless, let’s analyze the bailout mania that will most certainly one day be declared the largest and most brazen swindle in the history of the world.