Despite the promises, the bailout is not, of course, propping up stock or house prices. The feds can print up and give out $3.5 quadrillion and it won’t work. Bush-Obama cannot repeal economic law, anymore than Hoover-Roosevelt could. House, stock, commercial property, and other prices must fall after the Greenspan boom, to accord with the new reality. That is, the malinvestments must be liquidated before we can restore prosperity, and the sooner the better. All that government can do, besides get out of the way, is make trouble. Oh, and it can hand out the big bucks to its cronies … Continue reading The $3.5 Trillion Robbery