Bailout ...

Sept 2008...

We are in middle of a largest bailout in the history. Latest bill for US taxpayer is estimated to be $700B.

It seems that no one on either extreme of political spectrum like this bailout. Financial conservatives don't like as they think of potential tax increase that will most probably come with new administration. Some don't like government picking sides and some simply don't like government intervention.

Some of my friends on liberal side think of this as just another way wall street and rich getting help from government. I sense that some of them think there is some massive collusion going on between wall st. bankers and republican administration.

What no one is talking about is this: the real estate bubble of last few years has pumped up the US economy. All of this surely has resulted in huge taxes being paid to IRS. So what if US government uses some of the money for bailout.

What I don't like about government intervention is that they will surely won't think about everything. The voices being heard are the ones who have strong lobby in Washington. Some times voice of the main street gets lost in Washington.

Here is another problem that I have. Once an arrangement like resolution trust is in place, it eventually will lead to a scenario where government ends up selling the paper back in the market and some of the same banks getting bailed out will buy that paper back. And that is not right.

Let's see how this plays out.