The bailout trends we have been hearing and reading are indeed something worth looking into. The world is at a crisis and much as we want to do our share, it looks like the fate is left at the hands of people in power in the government and countries that control the monetary system. Businesses are desperately seeking lifesavers and from the looks of it, the bailout philosophy aims to save them from drowning in debt.
While that is a given, you would have to think where the money is coming from. You can assume that these cash reserves were controlled for a purpose and for sure, that purpose is not for crisis to which many did not initially see. These monetary reserves were set aside for something and as an economist, you would think where they would get the money in case they start to be in need.
But frantic as it may, it seems that the problem at hand needs to be addressed. Everyone is panicking and worldwide recession is imminent. So with that in mind will the bailout philosophies work? If so, for how long?
We see the current crisis we have as something that is surely pushing us to the brink of poverty. But while we acknowledge the efforts from the world leaders, when will they get the returns from these borrowed lump sums? Businesses need the boost but as far as these loans are concerned, you would have to think that we may be in for something rougher ahead.
Originally posted on October 15, 2008 @ 4:28 pm