Friday, September 19, 2008

$500 billion bailout of financial sector

This is an outrage. The US government may take on half a trillion dollars more in debt by buying up bad loans from banks. This will push the national debt over the $10trillion mark. Who is going to bail out the federal government when its credit runs out?

2 comments:

Jeff Pruitt said...

"Who is going to bail out the federal government when its credit runs out?"

China has been bailing us out for quite some time now...

Robert Enders said...

Here's another question: What does the US government do when our wonderful Chinese friends become unable or unwilling to let us borrow anymore money? It doesn't seem like a good idea on their end of things to be loaning the US money. If I were them, I'd be worried about the US using human rights abuses as a pretext for not paying that money back.

It is more important for this nation to become financially independent than energy independent. Gas prices have always been going up, but as long as the US economy grows, we can more than keep up. There will always be someone willing to sell us oil and ethanol. But if the government continues its habit of bailing out bad companies, other countries will decide that the federal government is a bad credit risk. I hope the next president balances the budget because Bush is making Clinton look like a fiscal conservative.