Posted by: trickyguy | September 22, 2008

More on the Economy

Recently I posted some thoughts on how serious the problems were with the economy, and unlike both candidates for president, actually made some suggestions on how to improve the situation.

Wow, now it looks like I was really smart.  I think the truth is that I was paying attention.  Our candidates weren’t and the “team” in Washington wasn’t either.

Let’s see: this month we’ve seen the failure (or near failure) of two of the nation’s largest mortgage firms, two of the largest investment firms, and the largest insurance firm in the world.  And that’s not worth keeping a eye on and coming up with a plan?

Oh yeah, the government did come up with a plan (after the DJIA went down nearly 1000 points in two days).  Give private companies $800B to make everything better.  Their plan does nothing to prevent what got us here in the first place.  It does nothing to better oversee their activities.  It’s a “get out of jail free” card of the most expensive sort.

And, frankly, it really does nothing to help you and me directly.  If we, the taxpayers, are going to put nearly a trillion dollars into keeping the financial system afloat and making sure executives that make more than $500K a year can keep the money rolling in, doesn’t it make sense to do something for Joe and Jane American?

Nothing in this bail out does a thing to help folks who are about to lose their home, who are unemployed, who are uninsured.  But it sure keeps the Washington and New York country club memberships paid up.

It is, in the truest sense of the phrase, a bail out.  It fixes nothing.  In fact, it reinforces that the behaviors and the policies that lead us to this point are OK.  Don’t worry; the taxpayers will rescue you from your own poor judgement.

Yes, we need to shore up the financial institutions.  But with that must come changed policies and better oversight.  And yes, let’s also help those individual Americans affected by this.

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Responses

  1. Well said Great information, keep up the great work!


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