Planetdrum6

A Take On What's Ailing The Markets

Sounds unfair, doesn't it? Well, the taxes that we ants pay to bail out the grasshoppers are likely a bargain compared to the consequences of total market failure. Two weeks ago, markets reacted strongly to a minor player in money markets suspending redemptions in a couple of smallish funds. Can you imagine what kind of chaos would ensue if several major money market funds broke the buck, or if banks, lacking access to the Fed's (tax-subsidized) discount window, seized up and failed? If money market funds aren't safe and banks aren't safe, perhaps currency itself is not safe. Then what? (Hint: Hey, I'll trade you some gasoline for that can-opener).

No, I'll pay my taxes thanks. And I'd still rather be an ant than a grasshopper. With the savings I've accumulated (that taxpayers have helped keep "safe" even during market turmoil), I will buy up the cheap assets of those suddenly under the yokes of their creditors.