News

If You Love America, Keep the Money Hole Open

The Onion’s video about America’s money hole (the place where we like to throw all our money, sometimes adding gasoline and a light) is funny, but dated.

Or is it?

This week on Slate’s The Big Money, Heidi Moore argues that the next entity the government needs to bail out is the government itself. The stock market may be rallying, but the FDIC is running out of money, as is the Federal Housing Administration. The government is “now the single biggest investor in mortgage-backed securities.”

All of which is very scary because some experts believe that the federal stimulus programs—from Cash for Clunkers to subsidies for home buyers—are propping up the recovery that you may or may not be feeling.

Check out the video for a laugh, and then sober up by reading about why the Fed is f’ed. (Wall Street, by the way, is doing a-okay.)

In The Know: Should The Government Stop Dumping Money Into A Giant Hole?

Tags: bailout, banks, economy, News, politics, stimulus