December 1, 2008

Solution in search of a root cause

America is furiously printing money and bailing out anything that moves ... err, if we ignore cars that is.

Out one side of their mouth our government has blithely thrown billions at our car industry, while out the other they swear black & blue that Australia will lead the universe in all things carbon-trading (at the cost of tens of billions to our little economy), because, you know, Rudd is greener than green.

Every other government is either bailing or begging to be bailed by someone else.

At ground zero, no economist or politician is daring to dissect and proclaim actions needed to address the root cause of the financial melt down.

The global policy is all about: throw money and they will spend.

Or in the case of financial institutions: throw money and they will, arh, balance their own books, stuff the rest of you.

The desperation, the lack of thought for unintended consequences should be enough for a collective gasp, but instead we congratulate our pollies on their fine emergency reactive skills, their fortitude, the gutsy ways in which they are spending our money by the fist full.

So far the US government has pledged nearly $8 trillion pledged in loans, guarantees and investments, and that's just for the financial markets. Their intent is to save the US - and the rest of the world - from far worse. Let's hope it works, or at least doesn't break anything. Unintended consequences can create a bugger of a mess.

Bailing away

US will print as much money as needed


  1. Reminds me of that poem, Caz.

    "We'll all be rooted, said Hanrahan" Lol!

  2. Ah, you had a more classical education than mine Kath, I'm not familiar with that one. ;-)