Bush and his Treasury Secretary Paulson are asking Congress to push through a bailout of banks that have gambled and lost. Their package calls for $700 billion that we don’t have by borrowing $2,333 from every man, woman and child in this country. If the plan is passed, it will make this year’s federal deficit a record of ~$1 trillion or 7% of GDP (even bigger than Reagan’s record 6% of GDP in 1983). It would also balloon US national debt to ~70% of GDP at close to $11 trillion. And the plan is no sure fix to prevent a recession or worse!
I know we have to do something, but I don’t accept getting something rammed down our throats by President Bush’s (more…)