Free to choose?
Imagine this: A representative of the Federal government knocks on your door, and the following conversation takes place.
Federal Agent: Hi, we hear that you are having trouble paying your bills.
You: No, I’m OK.
Federal Agent: So, we’re going to loan you $50,000.
You: But, I don’t need a loan.
Federal Agent: Oh, and, you will have to pay us 5% interest on the $50,000. But, if you don’t pay back the $50,000 in 5 years, your interest rate will go up to 9%.
You: I really don’t need the money, please leave.
Federal Agent: OK, so, we’re all done here. We’ll start drafting payments out of your account.
Scary? Impossible, you say? Unfortunately, this is exactly what the “bailout” program is going to do. Even though many banks do NOT want/need taxpayer dollars, they are going to be forced to take the cash.
It is all explained in this Washington Post article here.
According to President Bush: “These measures are not intended to take over the free market but to preserve it.” Sounds perfectly reasonable to me. Forcing business owners to pay interest on loans they don’t want. Free market 101, right?
NM
