Thursday, October 02, 2008

Argh

I’m re-posting this because a server blip seems to have eaten it the first time around.

Economics is one of those things that just doesn’t compute to me.  I think because so much of it is intangible.  I get mortgages but once you get into buying mortgages, securities, all this stuff that doesn’t equate to an actual product, I get a little lost.

Regardless, I’m trying really hard to wrap my mind around this $700 billion Bail Out Plan (or Rescue Plan, depending on your persuasion).

But no matter how much I hear and read about it, it still sounds like when your credit card company sends you blank checks so you can pay off your other credit cards.  Transferring unmanageable debt from one lender to another.  Not an actual solution to the problem - just a way to buy a little more time.  But that time always comes with a price.

So ... if I’m hearing this right, the way to get out of a debt-caused crisis is to acquire more debt?

But the bill is having a hard time making it through Congress.

So the way to pass a bill that increases the government’s debt by $700 billion is to add on a bunch of “sweeteners” (pork barrel projects) so that the bill now totals $850 billion?

I just don’t get it…