Tuesday, December 02, 2008

Bail Out...BAD
Accountability...GOOD


The Wall Street bail out and impending Main Street bail out have me more worked up than any political move in years.

I guess because it hits so close to home. The Man and I's small business had too many things in accounts receivable but was still keeping afloat until a GC that owed our business $60K went bankrupt...

No one bailed us out and unlike the "Big 3" our demise wasn't by any fault of our own. Why are factory line jobs more important than anyone else's across the country?

Why should the average taxpayer have to foot the bill for Union benefits when the Union already got their dues? Why should the average taxpayer foot the bill for the "job bank" (big 3 employees sitting at their houses)? Why should they have to pay for some Union worker's benefits while already shouldering the burden of their own? ...And don't give me the "we can't lose this industry" crap. We won't lose it...it'll just evolve into a more efficient model as it should have already.

Funny how people on the Left have those little Darwin fish all over their cars...but they can't stomach letting the theory play out in real life. The American FREE MARKET system is all about survival of the fittest. You give the people what they want, at the prices they want or you evolve and if you can't...you fail.

For those that haven't seen this --it's pretty sobering:

Jim Bianco of Bianco Research crunched the inflation adjusted numbers. The bailout has cost more than all of these big budget government expenditures – combined:

• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion

TOTAL: $3.92 trillion

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data courtesy of Bianco Research

That is $686 billion less than the cost of the credit crisis thus far.

The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion. (source)

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