Tuesday, September 23, 2008

If Peak Oil is here, the Bailout won't work

clipped from news.yahoo.com


Lawmakers raised doubts Monday about what would be the largest government bailout in American history, but a bigger, more terrifying question lurked right under the surface: What if it doesn’t work?


“The alternative is complete financial Armageddon and a great depression,” said a former Federal Reserve official. “Where do they go after this? Well, the U.S. government could nationalize the banking system outright.”


A few months ago, that idea would have been laughed out of the room.

US Secretary of the Treasury Henry Paulson briefs reporters in Washington, DC on September 15. World markets slid amid mounting concerns over a massive bailout for the US financial system, as haggling over the fine print sparked investor impatience and a spike in oil and gold.(AFP/File/Jim Watson)


But no one’s laughing anymore.


So what’s Plan B?

There really isn’t one.
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