Bailouts, Relativity and Dead Parrots

I'm still trying to grasp the concept of a trillion dollar bailout.  Einstein thought about riding a beam of light.  I think he had the easier time.Think about this bailout thing for a moment.  We are told that the problem is a credit crunch  -- a lack of lendable funds, or a lack of willingness to lend them.  The solution would therefore seem to lie in coaxing money from the relatively asset-rich to the relatively asset-poor.How would you do that?  Our government is doing it with huge bailouts, an $850 billion bailout under President Bush and an $825 billion or so stimulus under President Obama, on top of all the other bailouts for AIG, Fannie Mae, Freddie Mac, etc.  Multiple trillions of dollars.Where does the government get this money?  It doesn't have it on hand, not by a long shot; it already owed the public over $5 trillion before this all started.  Answer: it borrows it.That's right.  When the problem is lack of borrowable...(Read Full Article)