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that's an imperfect analogy. No economy (besides Iceland and Latvia perhaps, and even they haven't defaulted yet) has crashed so far. All are having engine pro
by borism 16y ago
that's an imperfect analogy.
No economy (besides Iceland and Latvia perhaps, and even they haven't defaulted yet) has crashed so far. All are having engine problems though. What those bailouts are doing is buying some time before the crash, so we can hopefully restart engines or glide to a safe landing. That's the phase we're in now. Unfortunately I'm not very optimistic that our flight crews can still manage to save us.
- sown 16y agoOK, I see what you mean, but if what I understand is correct about the 2008 situation, we just narrowly avoided a crash and there's not enough real change to prevent it from happening again, at least here in the US.
- varjag 16y agoIs there any indication that anyone's going to restart engines?
- deleted 16y ago[deleted]
- anamax 16y ago> What those bailouts are doing is buying some time before the crash, so we can hopefully restart engines or glide to a safe landing. That's the argument for doing the bailouts. The reality is probably that they're just delaying the inevitable and making it worse. And that trillion dollars is money that we won't have to help pick up the pieces. To put it another way, the bailouts are like giving an alcoholic another bottle of Jim Beam. Yes, it stops their jitters now, but they'll soon be even worse off than they are now.
- borism 16y agooh, that argument is getting soo tired... even though I agree with it on some level. you see, capitalism is based on confidence. lose confidence and you lose everything. buying time helps to restore confidence. does it make system more stable? no. but it helps to prolong system's life. it's like Ponzi scheme - we need to keep it running, because when it stops... or do you have a better idea?
- anamax 16y ago> that argument is getting soo tired The relevant question is whether it is correct, not whether it is "tired". > buying time helps to restore confidence No, it doesn't. At best it delays the time when confidence is lost. In reality, it increases the cost of that loss of confidence. (And, it's not confidence, but this message is tedious enough.) > do you have a better idea? Yes - take the hit as soon as possible. It costs less then and you haven't spent much trying to avoid it. Win win.