What the bailout really means

So, now they’re talking about bailing out the mortgage companies. Let’s put this into perspective.

Bailing them out will mean more deficit spending, which will increase inflation. That inflation will eat into our earnings by resulting in even greater prices at the checkout counter, and the gas pump, and everywhere else, and more significantly it will eat into savings, including our retirement accounts.

So, really, what they’re proposing is to take wealth from people who have saved and spent their money wisely, and give it to people who made foolish investments and paid the price.

Sounds like a typical government reaction, doesn’t it?