If bailouts kick the can down the road, the debt crisis will only get deeper. Add to this the greater role political forces will naturally have in overseeing all their interventionist workings. Smart (private) money is leaving risky debt. New business is not attracted to big government making big rules overseeing big bailouts. It however seems that kicking the can down the road is a better option then the one George Papandreou wanted to pull out a few days ago:
What a nasty quandary, succumb to a stock market that moves on government policy demanding more debt and more oversight...or...default resulting in chaos. Great job nanny state. It seems to follow that the same lack of foresight that got them into this situation is the same delusion that is enabling them to defer today's crisis down the road by big bailouts.
How is the message not obvious?
-Government, leave the markets alone.
-Let the idiot lenders fail and take their hit.
-Accept that sooner or later we will have to deleverage, which will have a contraction on most economies.
-Learn from the mistakes of our past (social utopia: tax, borrow and buy it now...pay later...uh, never).
For us Canadians, buckle up! It's going to get messy before it gets pretty.
We need to advocate at home the value of a free market being free. Conservatives, here is your to do list:
1. Shrink the size of debt, programs and government employees.
2. Be more transparent/accountable...it's our money you have.
3. Repeat 1 and 2 over and over and over.
Canadians, I know we are not at the 'stupid-stage' that Greece is at, but we did elect an NDP opposition party...so don't get too comfortable...next thing you know, they could be in power and take us down Greece's big debt ridden road.
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