14 February 2009

TARARA Boom-di-ay

The American Recovery And Reinvestment Act has been passed.

My government just committed to double the national deficit, possibly start runaway inflation and throw away enormous sums of money without going through a normal budgeting process. I feel so... I don't know.

Maybe there is a clue in the words of President Obama. He has recently said, repeatedly,
When the town is burning, you expect everybody to grab a hose.
Mr President, I don't think the proper analogy is "town"; I think it is "forest." And sometimes, for the good of the forest, the forest needs to burn. But you, Pres. Obama wants everyone to grab a hose.

Yeah. That's it. That is how I feel.

(I have no idea about Jim Slattery, and I disagree with the anti-corporate sentiments of the ad, but the visuals are about right.)


Exodio said...

That's exactly it. Sometimes the fire needs to burn through the forest. But realistically, is that an option? Can we let the economy burn to the ground and start anew once the embers have died out?

What do we do with the millions of starving and displaced citizens in the meantime as we wait for this broken system to break down completely and start again?

Tony said...

We did not need to let the whole economy burn, but if we had had the courage to let some of the "too big to fail" banks actually fail, we would have had some substantial and necessary fires.

The usual means for rescuing a bank is to take its assets and sell them at a discount to another bank. Instead, sell them at a discount to a series of smaller banks. What if, instead of Wachovia being shoved down BoA's throat, they had picked one small regional bank in each state and divided up Wachovia's assets 50 ways? Probably would have cost us more in the short term, but we would have broken up on of these troublesome behemouths.

Another way of burning the forest would have been a structured (or not) bankruptcy for GM and Chrysler. I do not think that would have been a bad thing.