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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (83730)	8/24/2008 7:17:57 AM
From: valueminded	Respond to of 116555

Mish: Since the government will likely bail out all these firms and they will likely not raise taxes, it seems in a fiat money system, once everyone realizes you can vote yourself money they do. Understand what you say about credit markets, it just seems like the govnt will step in and bankroll every "too big to fail" organization. The automakers (for example) ought to be allowed to fail - they do not need a bailout, they squandered there money and now they want someone else to do the research they should have been doing all along. Failure (if it fails) is likely fiscal, but not deflationary - as more money and bailouts get approved. Eventually the world weans its dependance on the US $$ at which point fiscal responsibility will be forced upon our govn't. At that point, I could see deflation, but that is years away. imo