Thursday, October 09, 2008

Reality.

In vox-pop interviews there have been lots of negative comments about the Government's plan to cope with the present financial crisis. "Why should we bail out those who created the problem in the first place?", "Cutting interest rates will discouraging saving at the very moment when we need people to save", "The banks get government money to help them, but there's no help for my small business", "The government will take preferential shares in the banks to the detriment of ordinary shareholders", and so on and so on. All very valid points, but what we need to realise is that this is very much a case of the lesser of two evils. Yes, this is going to be unfair in many respects, and many people are going to get hurt as a direct result, but if nothing were done, many, many more people would be hurt and to a far greater extent. There is no magic solution, only a least-worst one.

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