PUBLISHED: 10-13-08

Letter to the Editor

Re: Bailouts necessary in rocky situation

The Chronicle’s sole piece on this topic leaves out mention of a deflationary depression, which is what would happen if there was minimal intervention in the markets. This would lead to tightening of the money supply and would strengthen the dollar, while at the same time affecting markets in a way that would lower oil and gold prices if supply and demand remained the same.

The Chronicle makes no mention of the fact that bailouts are meant to prevent deflation and result in further currency devaluation and inflation.

Congress could have held hearings on possible solutions, created a mechanism for government to take interest in mortgage-backed securities, use power to work out new deal for homeowners and opened up a discussion on our nation’s underlying debt-based economy and the role of our monetary system in the
redistribution of wealth upward.

Students, this bailout is part of politicians’ desires to advance an agenda of deregulation and they did it in the same way that they advanced an agenda against civil liberties with the USA PATRIOT Act and an agenda against humanity with the authorization for war in Iraq.

However, we have a bigger problem. Our media is not opening up discussion and educating Americans, and especially students, on the economy. Students are unable to accurately discuss the economic issues we face.

To The Chronicle, your sole editorial and lack of coverage on the bailout is pitiful when considering how much impact this bailout will have on students. Open discussion and education can begin now, if you so choose.

Kevin Gosztola
Junior
Film and Video

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