recession cure

Our first attempt to cure the recession was to bail out American International Group, Inc. to the tune of $83 billion. Their stock was originally selling for $74.00 a share. At last report it is selling for $.85. I don't know how many shares they had out, but I suspect that was a loss to the stockholders for another $83 billion that would bring the loss to our economy of $166 billion.

Question is where has the money gone and what do we have to show for it? Now Washington is passing a 1100 page, $787 billion stimulus bill that most of our representatives have not even had time to read yet. At 5% interest that brings the cost next year to $826 billion, 350 million and will increase accordingly every year to add to our national debt and that does not even include the normal cost of running the government. A big part of the stimulus bill is a big reduction in taxes, so our income will be down. So where are we going to get the money to pay off all this debt? Seems to me we are digging ourselves a bigger hole all the time.

The bill also includes $70 billion to shelter the upper income people from higher income taxes. So who do you think is going to pay the taxes to make the repayment if we ever get in a position to do so?

My Opinion by John Zilverberg