Here’s a revelation: A story headlined, “Bailout funds being spent in ways Congress never foresaw.”
What? Our omniscient congressmen failed to forecast the fate of their latest multifarious munificence?
You know, whenever I myself spend hundreds of billions on random questionable socialistic takeovers of the economy, I always demand an itemized account of exactly what I will get in return. Always.
It seems that the $700 billion just authorized by Congress is not only being spent on buying up troubled mortgages but is changing into a “broader bailout of all sorts of troubled businesses.” Some banks used the money to buy other banks instead of to “spur more lending.” And other recipients are paying dividends to stockholders.
Apparently, various central planners of our economy expected those receiving the money to use it in more publicly spirited fashion.
Such caviling ignores the real problem, which is more basic. You can’t cure the effects of gignormous debt creation and gignormous subsidizing of unwise enterprises with even more gignormous debt creation and gignormous subsidizing.
If massive intervention in markets caused the economy to curdle, roll back the massive intervention. Let investors take risks with their own money.
But don’t get drunk all over again, faster and harder, and expect that this time there won’t be any hangover.
This is Common Sense. I’m Paul Jacob.