Thursday, September 25, 2008

BREAKING NEWS: Compromise reached on bailout plan, but it won't do a thing to stop recession

Congressional leaders have reached a compromise on the bailout of Wall Street fatcats that would deliver corporate welfare in three stages to see whether the plan is working than immediately fulling funding it.

In addition, Democrats are taking an economic stimulus plan to Wall Street to make the medicine of the bailout go down easier in the throats of taxpayers. That will just add to the already mushrooming deficit, which now is set to a debt ceiling of $11.3 trillion.

Any bailout plan must not be pasesd. The economy -- which has been bolstered by riotous living of the the past quarter century -- must go through a deep recession that will border a depression. You can't buy your way out of economic cycles. Any bailout plan will severely weaken the dollar, forcing this economy further into retreat and Wall Street into more volatility.

Even the Great Depression did not end because of FDR's programs. It ended because of WWII and the demand for armanents from the manufacturing industry.

The president last night finally acknowledged the nation is in an a recession, something he denied most recently in the summer. So why should anyone trust what he says now.

House Speaker Nancy Pelosi is leading the Democrats. That fact still does not make the bailout right. Democrats get the most campaign contributions from Wall Street fatcats. So Pelosi is just protecting the goose that lays the golden egg for her party.

There is no reason to have any confidence in any bailout plan that will come from Washington. Economic cycles cannot be avoided. We are in a deep recession, and it is going to stay that way for the next 12 months or longer.

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