Capitol Hill Blue Forums Political Issues Finance, the economy & Economics How will the financial crisis develop?

Ardy, you assume the proposed mega-bailout will avoid the "very deep" I am less sanguine about that.

I admit I am far from savvy in matters financial, so I may just be trying to apply common sense to something only experts can understand.

I agree that in the short term, the bailout will avoid a very costly depression that would have wide impacts on all but the very rich.

But the bailout does not engage with the real problem in my opinion. That problem is fantasy financing, a digital game available to all but in which only a very few can ever win. The rest of the players provide the fodder which is consumed at will and when needed.

Debt is the problem we are trying our best to avoid. But it will not ultimately go away. At some point we must face the fact that the underpinnings of the economy, both US and worldwide, are unstable and fundamentally flawed. You cannot simply increasingly print money and not have that come back to bite you in the ass big time.

This bailout will possibly, and I repeat possibly avoid a meltdown in the near term. But it really exacerbates what I consider to be the real problem. Sort of like solving a cavein by digging yourself in deeper.