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To: ThePythonicCow
True enough. This just happens to be the biggest bubble in the history of human civilization; it should be a fun ride.

Unfortunately, I suspect (though I really hope I'm wrong) that Paulson et al. will inflate it to twice its present size before it bursts.

Further, even if the bubble would be the same size when it bursts as it is today, and even if the bail-out magically cost nothing, trying to delay the burst would still be a bad idea. It won't be long before the Social Security bomb hits. If the markets crash now, they may have recovered enough to survive the SSB. If we wait before letting them crash, disaster.

26 posted on 09/24/2008 11:29:21 PM PDT by supercat
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To: supercat
I'm figuring that the Social Security problem can be dealth with by arranging for the monthly checks to be worth perhaps half what they promise to be worth now.

They can do this with a combination of not indexing the increases as rapidly as real inflation (which they are doing now, by stealth suppression of the Consumer Price Index), by delaying the "full retirement age" further, and by other such adjustments. In short -- inflation must increase more, for Social Security and all this other debt, over the next few years.

Medicare is a bigger problem; that is handled by further socializing medical care -- it all becomes "free" and that's about what it's worth (though it costs the taxpayer far more.)

27 posted on 09/25/2008 3:16:55 AM PDT by ThePythonicCow (By their false faith in Man as God, the left would destroy us. They call this faith change.)
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