Harder QOD
How does pumping 700 billion dollars into our economy become a good thing? I am no “not brian” but on a simple level, doesn’t pumping that kind of money make things worse? Weaken our dollar? I remember reading somewhere about a government pumping money into their economy and it crashing horribly, no?
http://stoptaxing.wordpress.com/2008/09/30/penny-wise-pound-foolish/ Try this explanation and get back with me.
We’re going to get a horrible bill, and any bill they come up with to do the bailout will be horrible — but it won’t be as bad as doing nothing.
The biggest problem, which no one seems to be talking about, is that if our financial system gets weaker, OPEC might decide to price in euros. If they do that, the dollar will fall further in relation to te euro, automatically raising oil prices, probably a lot. Since virtually everything we buy requires fuel in its manufacture and transportation, that means significant inflation. We could get back to a 1970s economy.