Ok, watching Go Diego Go with my 2 year old grandson has warped my mind. Everyone is calling the bailout plan a "rescue plan" and my mind switches to a silly video (see here). I get to singing the little song every time I hear it.
Previously, I posted on pyramid schemes (here) and multi-level marketing (here). I also talked a little about profits (here) and said they were a good thing. My goal was to get to this post and after a few interruptions I'm here.
My thought all along on this bail out plan (excuse me Rescue Plan! - Diego is very emphatic) is that it reminds me of a pyramid scheme. Everyone is saying that the problem we have is because of bad home loans. Ok, I've blogged about that too (here, here, here and here). I've been talking about this for over a year. The problem I have now is with our solution.
We've decided that the way to fix the problem is to allow more people to borrow more money. See, the problem before was that they couldn't repay all that they had borrowed, so now we're lending them more. Makes sense, right?
This is like the pyramid scheme. As long as people are buying and selling homes, we can keep the economy flying. Once people stop and look at what they really have, it all falls apart. I really don't like the alternative (lots of foreclosures, depressed home values, layoffs, general depression), but I honestly believe the longer we delay this the worse it will be. Someday, we have to pay the piper and it won't be pretty.
4 comments:
go diego, go diego, go diego, go....
gee...now I can fall asleep thinking of deigo's silly song :)
i agree...the bailout seems to have an issue- one one end is a bucket to bail out...but noone wants to see the shovel that is digging deeper on the other side.
Arescate! Por favor!
( I think that's the right spelling.)
its getting bigger and bigger
Glad to know that others have watched that silly show.
And sad to realize that others think the rescue plan seems to be endless. I wish I had a better outlook.
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