Over at Bond Dad, he has been talking about the financial situation in this country as of late. In the midst of talking about possible remedies, he says this...

In short, the financial sector is feeling the pain of their complete lack of due diligence for the last 7 years. Now they are going to Congress asking for a bail-out. The problem is this: any bailout will only encourage this kind of behavior all over again. And that is something we have to avoid to prevent this from happening again.

He doesn't actually explain what Congress would have to do for a 'bail out'. It isn't hard to figure out, the financial sector is strapped for cash. A bail out would mean giving them cash. The cash could only come from the taxpayer, if Congress is handing it out. And where would this cash flow originate? Not those with the money, they are paying the accountants to keep it away from the IRS. That leaves the average taxpayer.

So, the financial sector is looking for handouts. If they get it soon, the intent is to keep this sector from going tits, and in the process bringing the whole deck of cards down as well. But, the government doesn't have it. The national debt is in the trillions. What happens if, after we give the handouts, it doesn't work and the economy really goes tits, and people start walking the streets because there is no work? No income, no paying taxes. This is the source for any attempt to pay off the national debt, which won't be happening, obviously, if there is no tax revenue coming in.

The author of the blog says they shouldn't get the handouts because it would just encourage the same behavior that started all this. I say no handouts because it is just another way to transfer what little money the common folk have to those that have a lot more, and the greed to take it with no regard from where it is actually coming from.

I'm no economist though....