Ali in Blunderland

He’s baaaaaack. Ali Velshi used to be a regular talking torso on CNN’s morning TV. Then something happened and we didn’t see him much. Perhaps it was because he was writing his book "Gimme My Money Back: Your Guide to Beating the Financial Crisis". Like all the other investment books before him, he promises... something.

Anyway, Ali’s back spouting out opinions again instead of reporting. This morning he said, “There is a school of thought that says we’d be worse off without the bailout [$350,000,000,000 given to the banks and insurance companies], and I’m one of them.” Well, that’s an opinion that needs revising. Don A. Rich's "The Real Cost of a Full Bailout" will help.

I think that Ali Velshi even admitted – or at least didn’t dispute – that we don’t even know on what that $350,000,000,000 – that’s three hundred fifty BILLLLLLLLLion dollars - was spent. It could have all been wasted - (clear throat here) - to maintain certain people’s status quo. For sure it will result in more inflation... or curtail the necessary deflation. (You don't believe in the value of deflation? Check out Jörg Guido Hülsmann's "Deflation: The Biggest Myths".)

Some might say that knowing that there was another $350,000,000,000 available helped people’s confidence. That’s ludicrous. Knowing that a bailout is there only allows people to be more reckless with their spending. It’s a perverse incentive. Having the people responsible for this mess to be accountable – accountable, not just “take” responsibility and then throw it away – is what was and is needed.