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I'm pretty sure, he is right.
What the bailout however will do, is transfering wealth between different branches of the economy.
From the reality based economy to the accounting economy.
From the economy of future growth to the economy of past growth.
From the creating economy to the redistributing economy.
From those rich people, who have 'earned' their money to those rich people, who have 'made' their money.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Sun Sep 28th, 2008 at 12:07:40 PM EST
[ Parent ]
I greatly doubt that the story is so simple.
Federal taxes mmm... Does the bailout come with a dedicated new tax?

I thought it didn't. So it's simply increasing the debt, which will either mean new taxes, and it's just our guess as to who they will hit, or reduced programs. Either cancellation or transfer to local organisations. Which will have the choice of either raising local taxes or reducing benefits.

There are several ways of 'paying'.

"Few can believe that suffering, especially by others, is in vain. - Galbraith"

by Cyrille (cyrillev domain yahoo.fr) on Sun Sep 28th, 2008 at 12:22:40 PM EST
[ Parent ]

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