MetaChat is an informal place for MeFites to touch base and post, discuss and
chatter about topics that may not belong on MetaFilter. Questions? Check the FAQ. Please note: This is important.
13 September 2008
Chicken Little says Lehman Brothers may crash My soft spoken local pharmacist said he thought 158 year old Lehman Brothers may crash tomorrow. yikes. Does anybody here know about this stuff? I'm clueless. If it crashes will Obama be elected :)
As for the election, this is one part of a bigger picture on why I don't believe anyone's promise to lower taxes. The overall cleanup is going to be too costly. New programs like healthcare will take a second seat to getting existing programs operating at an optimal level, and that alone could take years.
Yeah, it won't exactly crash. It will be quickly and neatly rescued, with any taxpayer-borne expenses hidden in the endnotes. Paulson has been nothing if not efficient at that sort of thing this year.
For the most part this isn't something that will show up as a discretionary budget item that you're clearly paying for with your taxes. It will be a deep wound to the balance sheet and the economy that will take years to heal. To some extent that would be the case if the government did nothing at all. They're just acting at a time when they can preserve "the market" from scary repercussions that could wipe out many more people's savings and investments, and cynically, when there are folks -- capitalists, to be blunt -- who are ready to take on a burden with the expectation of making money off it.
But yeah, this makes the S&L bailout look like a weekend at the beach.