Friday, March 6, 2009

I Have a Bad Feeling About This

We now have money to give to banks and other organizations, in a bid to bail them out. But money does not grow on trees. We are able to get that money because foreign lenders supply it. If it does not appear that government will be getting repaid, foreign lenders will be worried that they are throwing good money after bad. The supply of easy money may dry up. That is economically problematic, to say the least. What gives me a bad feeling at this moment is the thought that the $100, or $100 million, that we are giving to a certain banker now, will be money that we will desperately need for food and other essentials later. It has long been the case that just a few dollars (sometimes, even pennies) would be sufficient to save the life of some Third World wretch. Our bailout talk does not yet contemplate the possibility that, in the worst hard times, a similar financial logic may apply at home as well.