Monday, October 6, 2008

Bailout Fails to Reassure Investors

It appears that the great assistance plan is failing to reassure jittery investors around the globe or to ease credit, and it's increasingly doubtful that the government can do anything at all to restore confidence.

The markets here haven't opened yet, but stocks are already down in Asian and European markets, as panic spreads and credit continues to tighten.

Well-regarded NYU economist Nouriel Roubini, who accurately predicted the present debacle, calls the situation one of "generalized panic", and noted that the numerous government interventions of the past year have been getting larger, with diminishing returns.

What's next? A still-larger allocation of future taxes to be tossed down the sinkhole of collapsing debt? And how do we know it will work, when it's already obvious that the massive intervention of Friday isn't going to work as projected.

We can't continue to take the bait. Too Big to Fail also means Too Big to Bail.

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