The Big Bailout Bill

One of the more vexing things about watching Congress approve the Big Bailout Bill was the lack of information about what was in the bill. Everyone knows it was larded up in pork by the Senate, but what about the actual bailout part? The legacy media has not been very helpful.

Here is the most detailed summary I’ve seen. Note that the Big Bailout isn’t a short term affair, nor is it really limited to $700 billion.

Don’t expect me to be outraged. I’m coming to have ever lower expectations of our elected officials and my expectations are increasingly being met.

So, what does it all mean? It’s simultaneously simple and complex. The simple part is that too many people have been living too far above their means. Markets are in the process of correcting this and we can expect to hear lots of stories of hardship and woe as people learn that there’s no free lunch in this world. The convoluted part is the impact of the Big Bailout and future government actions (what future actions? see my comments on low expectations). The effect of these actions will be to distort the correction, perhaps by slowing it down or perhaps by changing who exactly is impacted and by how much. This, of course, makes planning more difficult (for those dozen or so people who actually plan things) and everything more uncertain. Not A Pretty Picture.

But be of good cheer. It could have been worse. And it may be yet.

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