Sy makes a good point that a government bailout now will benefit everyone, not just the banks and risk takers:
"It's not even just the banks and the hapless homeowners who will lose their homes. It will be everyone. Think deep recession because a banking system on which business depends is barely operating. Everyone would suffer."
Sy reminds us that this would not be the first time taxpayers have come to the rescue of risk takers who lost.
"In the early 1990s, greed and foolishness got the banks in trouble again, resulting in the scandals and losses surrounding the infamous savings & loan collapse. Congress formed the Resolution Trust Corporation (RTC), which protected bank depositors by taking over or closing more than a thousand S&Ls and failed commercial banks, at a cost to taxpayers estimated to be more than $600 billion.
The current situation is just as serious."
As a fiscal conservative who is a registered Libertarian, I hate to see the government bailout people who make bad choices at the expense of those who make responsible choices. But Sy Harding makes some very valid points that a collapse of our financial institutions won't do anyone any good. I believe those permabears who are short the stocks and negative on the US will speak loudly against this bailout, but we need to remember they are "talking their positions" with little interest in what is best for everyone.
Sy Harding MACD Buy Signal
On a seperate note, the MACD for the S&P500 has turned positive and members of our "Sy Harding Discussion Forum" at the facebook group "Investing for the Long Term" have said it was the "Seasons in the Sun Signal" to return to the US stock markets after getting out in May.