Anyone who is interested in the current economic situation of the United States should take a few minutest to read Too Big to Fail? by Peter Goodman in The New York Times. It's a very terse look at the current American situation, and some of the questionable things that have been done in an attempt to prop up the declining economy. While the government is again jumping to bail out poorly run businesses, the article points out that is probably not the best option:
For one thing, this argument goes, taxpayers – who now confront plunging house prices, a drop on Wall Street and soaring costs for food and fuel – will ultimately pay the costs. To finance a bailout, the government can either pull more money from citizens directly, or the Fed can print more money – a step that encourages further inflation.
“They are going to raise the cost of living for every American,” said Peter Schiff, president of Euro Pacific Capital Inc., a Connecticut-based brokerage house that focuses on international investments. “The government is debasing the value of our money. Freddie and Fannie need to fail. They are too big to save.”
I know I was upset to hear that the government was going to bail out another poorly-run entity. The biggest problem is that these companies are being saved at the cost of the citizens of this country. Shouldn't things be happening the other way around?