Posts Tagged ‘government bailout’

I recently read a humorous bit about bailouts and stimulus:


This year, taxpayers will receive an Economic Stimulus Payment.

This is a very exciting new program that I will explain using the Q and A format:

Q. What is an Economic Stimulus Payment?
A. It is money that the federal government will send to taxpayers.

Q. Where will the government get this money?
A. From taxpayers.

Q. So the government is giving me back my own money?
A. Only a teeny amount of what you paid.

Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn’t that stimulating the economy of China?
A. Shut up.

Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:

  • If you spend that money at Wal-Mart, all the money will go to China.
  • If you spend it on gasoline, it will go to the Arabs.
  • If you purchase a computer, it will go to India, China, or Taiwan.
  • If you purchase fruit and vegetables, it will go to Mexico, Honduras, and Guatemala .
  • If you buy a car,it will go to Japan.
  • If you purchase useless crap, it will go to Taiwan.

And none of it will help the American economy.

We need to keep that money here in America. You can keep the money in America by spending it at yard sales, going to a baseball game, or spend it on:

  1. prostitutes,
  2. beer (domestic ONLY), or
  3. tattoos,

since those are the only businesses still in the US.

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Doing his impression of Al Gore’s Inconvenient Truth, journalist Glenn Beck illustrates the looming danger of hyperinflation due to the ongoing government bailouts:

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This idea of government intervention has capitalists divided over the soundness of government bailout. Those against the bailouts argue that it has been government intervention of free markets that has caused the crisis and the problems won’t be solved by more of the same. Those arguing for the bailouts contend that in the absence of government intervention, economies will grind themselves into oblivion.

These two sides of the heated debate are well represented by Peter Schiff and Steven Leeb, both presidents of capital management companies and authors who have predicted the coming crisis long before but are prescribing very different solutions.

Schiff and Leeb have been pit against each other since last year at critical junctures during the crisis. The three videos below show the two debating right after (in order): (a) the bank bailout proposed by Paulson in September 2008, (b) the bailout of the automakers in December 2008, and most recently (c) the unveiling of the Obama stimulus package in January 2009.

The two make passionate arguments for their side, and it isn’t an easy question to say who of the two is correct. Recently since the bailouts have begun, stock markets and the US dollar have recovered slightly but that recovery seems to be waning. Checkout the debate and see who you agree with.

After The Bank Bailout ( September 2008 )

After The Auto Bailout ( December 2008 )

After The Obama Stimulus Package ( January 2009 )

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In this conference conducted by the Ayn Rand Center, Dr. Yaron Brook responds to a query regarding The Great Depression of the 1930s in the United States. The salient points of Dr. Brook’s talk relate to the establishment and the consequent actions of the Federal Reserve beginning in 1914 which ultimately culminated into the stock market crash of 1929 and the resulting depression. This talk is very timely now that the United States and Europe are entering a contracting phase in their economies in the wake of the crash of subprime mortgages and the bursting of the housing bubble and stock market crashes.

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