Why Government Is SO Bad With Money: (Must Read) Everyone complains about what poor stewards of the people’s money the government tends to be, but rarely does anyone address the question why. We chalk it up to greed and stupidity, or we just take it as the natural course of things, joke about $200 hammers and move on. But there are actual, quantifiable reasons that government is bad with money and those reasons are systemic in nature, meaning that no matter who is in charge, or what laws are passed, the root reasons for the waste and fraud will still be with us.
Paulson’s Scheme: So much for all those predictions that the markets would begin to recover once members of the U. S. House of Representatives summoned the courage to resist the populist outcry and vote for Hank Paulson’s $700-billion rescue plan. Whatever the excitement it generated, and the disappointment its original rejection by Congress caused, the market appears to have arrived at a more considered view of the U. S. Treasury Secretary’s scheme. Sadly, the market’s negative verdict is on the mark.