Questions abound: Do we believe in markets, which can be volatile--or only in managed markets biased by government policy to the upside? Or do we believe in corporate socialism?
Is our economy so fragile that it cannot withstand shocks? Or is it fundamentally sound, as Senator John McCain was declaring until just days ago? And if our economy really is fragile, just how will borrowing $700 billion more to pay for bad loans make things better for anyone but the lenders and some of their customers?
What assurance do we have that borrowing $700 billion will not make things worse? None.
You want me to think things are going to get systemically worse without this bailout? Prove it demonstrably. This system is broken, and throwing money at it is asking too much of taxpayers. No matter what David Gergen says, this wasn't a mistake.
Fundamental mistakes have not been addressed in the proposed legislation that absolutely should be before the American taxpayers allow our legislators to pass anything:
- Confidence. Confidence in the economy has been systematically hammered over the past few weeks not just by market circumstances, but by public statements and arguments made by the MSM and politicians alike. The effects of low confidence (by consumers and other stakeholders) are innumerable. Low confidence is a key cause of runs on banks (precipitating this whole mess), and folks withdrawing their money from the markets.
- Credit Card Companies: If these m*therf*ckers are going to benefit from this legislation, then NOW is the time to make their practices more regulated concerning fee structures and transparent and immutable billing means for their clients--you and me.
- Punishment. That's right, punishment. If I don't pay my bills I'm probably going to go to jail, or live a life in abject poverty until I die and get buried in a pauper's grave. If bankers, housing inspectors, whoever, didn't do their job, then punish and fine them as individuals. How about some accountability here?
Now is the time to invest in solid companies that actually produce something, not worthless paper stocks that just buy other worthless paper stocks. And make sure they're American companies, too, not ones sending us poison imports . . .
3 comments:
I agree. I listened to the wailing and gnashing of teeth yesterday... and yet the sun rose and the market is up. Stocks lost $1.2 trillion yesterday - but was it really value or was it over value?
We heard all year how the value of the dollar was falling and that was bad, now it's rising and that's bad too? The price of oil rose and that was bad, but now it's falling and that's bad too?
I have a feeling that the longer it takes for the gubmin't to put together a "rescue" plan - without the world ending before they finish - the harder it's going to be to sell the American taxpayer on the need for Uncle Sam to "save the day."
Of course I could be completely wrong and living your barn in a month.
Barn party!
It's going to be an interesting market that emerges from this wreckage. If reports prove to be correct, instead of a recession that that traditionally affects those without higher education degrees the most, this recession looks to be fairly widespread, with most fields taking knocks and the financial community, the whitest of collars, being hit the hardest.
If the dire predictions come to fruition, you may have a large pool of talented, skilled, educated workers that companies are unwilling, or unable, to hire. It is perhaps not beyond the realm of possibility that these individuals will decide that the corporate environment was never that much fun to begin with and either enter into private consulting/freelance self-employment or take up entrepreneurship to get through the changing market.
Indeed, necessity and deprivation are the twin lesbian mothers of invention. In the long term (and not so long term), a large pool of unemployed or under-employed/utilized workers with skills/talent and a profound need to pay their bills may prove to be an enormous idea incubator and redefine exactly who the power players are.
Frankly, I'm sick of all the doom and gloom talk as well. We ran up the bills and now we have to pay for our rock and roll lifestyle. We need to pick ourselves up, dust ourselves off, get over it and say, "Well, if I can't get a business loan, how do I make my business work anyway?"
It's undiscovered country out there and so long as we don't let our false sense of entitlement confine us to our beds with worry and depression, undiscovered country is the best place to find gold.
Blah, I need to do some numbers research and post this on my blog.
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