Words matter.

I've been giving some thought to our treasury's decision to bail out some large failed banks and all the attention it's getting lately and I've come to these conclusions:
Everyone categorizes our options as being these two: namely bail the suckers out or do nothing and suffer through a recession.
Since I'm from the Austrian school of economics, I see it like this: to bail out is to do nothing. That is to say, it does nothing to address the problem that caused the artificial boom. The reason we're in a 'crisis' at this point is because economic law, as it tends to always do, is now proposing an actual, feasible solution: the liquidation of bad debt.
If the congress thinks it can monetize its way out of a recession, they just as well repeal the law of gravity while they're at it.
Now notice the words we're using: Bailout v. Rescue plan, Bust v. Market correction, Worthless junk v. Illiquid assetts. Notably, one of the 'toned-down' terms perfectly describes what is now occurring and exactly what we need: a market correction; and not surprisingly, that is precisely what our congress is trying to prevent, even at the peril of its reelection.
- David Sudweeks's blog
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