Tuesday, February 24, 2009

Difficult Times for Economy

1 comment:

Basudeb Sen said...

Paul Krugman is truly an arm chair economist: he is correct: if the Government bailout banks, Govt. desrves something in return in the same way as the private sector pour money into a company to acquire gaining ownership. The truth is money is neither of the Govt. nor of the private sector companies. Money is of the investors / savers. They give it to private companies not for ownership but for returns. The Govt. forces savers/ investors and taxpayers to give money to the Govt. Govt really has no right to ownership. Investors and savers and taxpayers are not asking for bailing out companies: they have lost anyways. Govt.s are bailing out to revive their credibility as an institution that has messed up the economy and the financial system because of their ignorance and incompetence together with their lack of the sense of responsibilty. They created the housing boom and burst. They created the regulatory vaccum.They created the large fiscal deficits. They should now restore all companies to health and give them back to the original shareholders. It is only arm chair economists who cannot see through the viel of their own jargons. Private and Public sectors are classification by ownership - but the money for the ownership comes from the same source individuals and households. By the way, banks lend huge sums of money - they do not seek ownership. The Governments are bankrupt: who own these Govts? Why not the people who bailout Govts. be given ownership in Govts.