It may turn out that buying the toxic assets would be the cheapest way to go in the long run.
EDIT: If only there was a way to arrive at an equitable valuation of those mortgages.
I am amused by these new terms being coined in an effort to pretend this kind of recession has never occurred in the past.
Toxic assets? Were they tainted with anthrax?
Stimulus plan? Is this where government screws the American people?
Government investment? A new term for tax and spend?
The Government cannot invest in anything; it TAKES from those who do invest and spends on constituents who will VOTE for them. In other words, it just TAKES from one sector and GIVES to another.
Government cannot remove "toxic assets." It can only buy them out with the tax money it confiscates from the companies and people it is buying them from. Nothing has been removed, the burden has been shifted and in the end, the people getting the "stimulus" up their butts will in the end (excuse the pun) be the American people.
When the Obama administration says it is removing those tax loopholes from corporations, think in terms of this; he is going to make us all pay for the increased cost. When Obama says he is going to raise their taxes, think in these terms; he will be raising OUR costs. When Obama talks about Carbon taxes, think in these terms; a tax increase on ALL of us.
When you increase the costs of doing business, business doesn't pay for it; WE DO.
It gives many a warm feeling to think that the FAT cats are going to get theirs, but the sad truth is that the only ones who will be “getting” it are the American people who will carry the burden of these increased taxes and costs of doing business; the very people Obama claims to champion.
Corporations are not entities that PAY taxes; they are tax collectors for the Government and ALL of their costs are passed to the consumer. Those companies that don’t, will not be around long and be filing for bankruptcy; see GM for exhibit number one.
