Government Bailouts

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Why does the government help people out of their credit problems? Essentially you do something stupid like overextend yourself, and the government bails you out. Stocks ticked higher on this news. Wanna know why I like this news? Read on...

The people and companies who got themselves in the rut in the first place, now have no consequences (or less) for their actions and in due time they will repeat the same mistakes (maybe not to the same degree, but they will). Stocks that got battered on credit worries are turning around (as seen today). What does this all mean? Well, for one puts on stocks that should be kissing the ground are cheaper even cheaper now. Some new problem gets uncovered which is not covered (yeah I know bad pun...) by the recent government actions and then financials will get screwed again.

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