Bailout Bribes
Obama may delay tax-cut rollback for wealthy – Yahoo! News
U.S. Sen. Charles Schumer, a New York Democrat who is part of the majority leadership team in the Senate, told ABC’s “This Week” that an economic recovery package between $500 billion and $700 billion is needed and could be ready by the time Obama takes office on January 20.
Can someone please explain to my simple mind where this money comes from? Isn’t highly leveraged borrowing with no collateral what got us into the mess in the first place? I know these plays are coming straight from Keynesian economics and FDR’s playbook from the Great Depression, but I think there is a really big difference this time around. Namely, back then the government wasn’t massively in debt to begin with so it could afford to borrow from the future to get by in the present. That’s just not the case this time around. Coming up with $2-3 trillion dollars is not child’s play (and trust me, when this is all said and done the total bailout package will be well north of $2 trillion.) And what’s it all for? It’s just going to bail out companies who are now calling in their favors for the bribes, (oops, I mean campaign donations,) they’ve made over the years to the two parties.