U.S. Government Digging themselves deeper in debt

Being a Canadian blog, I like to keep things Canadian. I am dumbfounded with the U.S. government and what they're doing.

U.S. Forces Nine Major Banks To Accept Partial Nationalization - Washington Post

It sickens me to think that 9 large banks need the government to step in and save them. I naively was under the impression that banks were the strongest companies in the economy. I guess I was very wrong.

Usually in the creditor - debtor relationship, the creditor has got the debtor all tied up with contracts and the legal system. If the debtor doesn't pay, he has his things reposessed. The sheriff comes in and takes what he wants. I guess that is what gave me this impression. If the debtor doesn't pay, the creditor goes after him.

Not in my wildest dreams did I think that banks would let themselves get into a situation where they were the ones in trouble.

So... the question is... why don't they go bankrupt? Why don't we let the sheriff come to their place and take everything? By the government bailing out the large creditors, this sends a message that the government is for the banks and not the people.

I understand that the frozen credit situation stalls the economy. Maybe that's not a bad thing. Banks need to learn how to manage their money, just like people need to learn how to manage their money.

Case in point... when an individual goes bankrupt, they have to go through a nasty process of baring their financial soul to the world. It's painful and lengthy. They have to liquidate their assets and then start from scratch. Many times this process takes several years to unfold.

Now.. when a bank goes bankrupt, or has a liquidity problem, they go to the government, who then promptly bails them out. Where's the pain and suffering in that. Does the bank have to bare their financial souls to the people, or the government? I hope so..

Getting back to the government.. The U.S. government is supposed to be unbreakable. The way they're spending, they're going to have liquidity problems soon. It could be that the other countries say to them.. "sorry, we're not giving you any more money." At that point you've got a credit crisis on a national level!

At this point, with the U.S. government borrowing hundreds of billions of dollars, they could go bankrupt as well. Except we would call it something more polite. The Polite term is credit crisis and liquidity issues.

Despite all of these bailouts, individuals have too much debt, companies and banks have too much debt, and now the U.S. government has too much debt. It takes years to pay down debt, and get into a situation where you have more assets than liabilities.

Yesterday the stock market rose 936 points. My opinion at this point is, "so what"?!! The U.S. still has an overwhelming amount of debt.

The U.S. government, companies, and individuals are going to have to do credit repair for many years to come. I guess I'll have to expand my DIY Credit Repair Ebook for Canadians to help them too! :)

Here's what Canadians can do.. Let's learn from the U.S. and not repeat their hideous problems. While we have the luxury of learning from the U.S.'s problems, I hope they don't drag us into their mess. I am sure we will be affected some how...

This article talks about?
Is the U.S. government digging themselves deeper into the hole?
Should the government use credit repair to help themselves?
Can I learn about credit from the government?