I normally steer away from politics in this blog, but as the USA considers the most massive financial bailout since FDR's New Deal, I invite you to consider what happened in two financial markets yesterday: (see Google Finance)
- The price of oil rose over $25
The price of a Euro rose from $1.45 to $1.48
In other words, investors know that the only way to pay for the proposed bailout is to run the printing presses at the US Mint. Your savings and purchasing power fell yesterday. As we head towards the November elections, support your favorite candidates, but make them find real ways to "pay" for any new programs. Money does not grow on trees; the United States just prints it (Econ 101).