Robert Samuelson's
column this morning is a must read for those who think that the bail-
out's cost is a deal-breaker. I've been saying for days that the cost estimates don't take the fact that the government could then turn around and SELL the assets it acquires when the market improves. Samuelson provides expert support.
Fine enough, but what will the feds do with that new found cash? Pay down debt? Not a chance, we've got universal healthcare, Pre-K and college programs to fund!
ReplyDeleteOur treasury can invest any cash coming back into China's Sovereign wealth fund. We can use China's manipulation of the yuan to our advantage, yes?
ReplyDeleteSure but by definition you've got to purchase the debt at a higher value than it's worse - otherwise you're doing absolutely nothing to improve credit. It's a bad gamble - it may be a necessary one but trying to dress this one up as anything but a HUGE expansion of the government is incorrect.
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