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Tuesday, November 25, 2008

Who's Really Buying Us a Bailout Now?

I wish the bailout terminology were more accurate for those of us non-economists who are trying to keep things straight. How can it be a "taxpayer bailout" when:

Whether you look backward or forward a couple of years, we are getting tax CUTS not tax hikes.

It would just make more sense if - at least periodically - they reminded us that this bailout is being brought to you by foreign creditors who are buying a trillion or so in new treasury bills.

At some point, it will be us taxpayers who pay back the loans to these creditors like China and at that point, we will owe them a chunk of interest in addition to the 1 - or is it 2 - trillion we've just borrowed over the past couple of months. Will these creditors ever get tired of buying our treasury bonds? Will they ever get surly and start breaking legs if we don't stay on a payback schedule?

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