Economics 1-0-1 Why Bailouts never work

I am sure everyone has heard and felt in some way the economic crisis that is happening in the world today. Banks are upside down due to bad loans causing the credit system to breakdown, foreclosures are sky-rocketing, U.S. Automobile industry is quickly becoming a thing of the past, jobless rates are highest in decades and the global stock markets are crashing daily, so what does all this mean?

It means that greed has taken over the world and the government thinks they can bailout the economy by throwing billions of dollars at the issue and it will just go away. My answer is very simple ! The government has the wrong answer. Economics is about much more than just money, it is about attitude, risk, and keeping the see-saw leveled.

Bailouts are never the answer rather a band-aid approach to a much deeper problem. Think about it this way, If the government of Mississippi were going to hand out money to the Desoto School system because they were having issues, how long would it be before all the other school systems would be crying they need some money. This is exactly what is happening. The government tries to bailout a couple of banks and all the other banks start screaming, which then give investors a gloom and doom picture of the economy and it trickles down from there. The other issue is that this is our tax paying dollars going to banks and other businesses that were mis-handled thanks to the new breed of greedy CEO's, but that is for another post.

It is time for the government to quit thinking about themselves and come up with a plan to help resolve the underlying issues and give confidence back to our investors. The investors are the key to this whole issue, when the investors have confidence in the market they buy causing the whole economics chain to fall back inline and when the investors lose confidence they quickly sale and do not buy causing the markets to crash. A lot of these issues just need too be worked through over time and not fixed overnight. If we lose a couple banks and an auto dealership in this turmoil then another one will eventually take it's place, but to try and bailout these companies that have managed to get themselves in this position is ridiculous and a waste of tax dollars. The money would be better spent giving it back to the tax payer who are ultimetly suffering due to a corrupt and greedy government and CEO family.

Wow, has it been that long !!

Okay, sorry to all my one Amy)faithful follower as I have not kept up with my blog site. I am rededicating myself to this blog site and have a lot to talk about. I don't want to mess up this blog by talking politics and the economy, but over the next few months, I will start picking apart the economic crisis and political woes that our country has and is facing; but for now I digress.

Everything at the new house is great. We are finally settled in and the dogs have found their new home. We are still trying to get everything in order and probably will be for the next few years. Amy is acclimating to the new surroundings okay as she has hit some bumps and bruises along the way. I think she has been educated more in the last months living here than she ever was living in Nesbit.

For all you deer hunters, I am happy to say there are tons of deer around here. There is not a day that goes by that we don't see deer venturing through our backyard or in the roadways. We have to be extremely careful around here when we are driving. Reportedly, there is a monster buck that stays in the scope of woods behind my house, but thus far he has eluded me. If I happen to see him, I would like to apologize to my family and neighbors when they hear what might sound like a war with the deer :-)

For now I am going to sign off, but I will be posting more regularly and actually might add some substance to my postings.......

God Bless,