So everyone has an opinion. All of the sudden our leaders in Washington have realized our financial institutions are in crisis. Dire predictions are being shared. One by one talking heads interview the principals and one by one they offer a vision that is terrifying.
Was it that long ago, that our leaders reacted to another threat by telling us to buy plastic and duct tape? Was it that long ago that our wisest advisers told us that WMD were in Iraq and we had to invade to stave off world destruction? Was it that long ago that the President and members of both houses proclaimed our economy was moving along? Was it that long ago that Al Gore told the world that everything is melting?
Now, money markets will fail. Now, mutual funds will collapse. Now, businesses will falter. Now, nest eggs will vanish. Now, banks will close.
The problem is news to those in charge of my money? The problem is news to those in charge of your money? The problem is news to those that were charged with monitoring the system? Overnight, we have to put up 700 billion dollars?
Oh please let me hear the American choir send up a resounding…HELL NO !!!!
CNN offers the following tidbit on line….The Treasury thinks that by taking problem assets away from banks, financial institutions will be able to shore up their balance sheets, allowing them to lend to consumers and other banks again.
Am I missing something? The Treasury thinks that by removing the bad assets everything will be ok again. What part of “the banks and financial institutions created the problems” is missing from the evaluation of the situation? Why should we reward bad judgment by removing the consequences of bad judgment.
It may be tacky but it appears to me that those institutions are pregnant with bad debt. They got pregnant by “sleeping around” with anyone. Now they are asking taxpayers to finance the abortion and pretend that the removal of the fetus will somehow miraculously remove their tendency to sleep around.
Common sense (something that is totally absent on Capital Hill) would indicate otherwise.
Now the democrats want help for those facing foreclosure. I suppose they want us to just overlook that the people that are facing foreclosure go into that position using their own free will. Certainly there are cases in which stupidity and greed entered the transaction. But again, the taxpayers are being asked to remedy the errors of others. This smacks of socialism.
The other point that has been brought up is executive compensation. There are many that think these folks are over paid. So, we are expected to just think it is ok for the government to step in and change compensation packages. These discussions are usually found in regimes that have large armies and want to take over the world.
When did we stop being America?
If the government wants to fund all the money markets with tax payer dollars; if the government wants to fund the SBA to greater degree; if the government wants to make mortgage money available to those in trouble, then the government is moving from a republic to a socialist state.
The reason that success feels so good is the opposite side of the coin feels so bad. The reason high risk yields greater gains is based in the risk. We are a great nation because those that fail can always attempt to succeed again. We are a great nation because we offer a system of capitalism that is in part fueled by risk and reward.
Today’s problems are not political. Today’s problems are the result of apathy on the part of all of us. We have become a cocoon nation. We have found our little niche and we are more than glad to let someone else deal with issues outside us.
We trusted the government to build levees that would hold up against storms.
We trusted the government to keep our borders secure.
We trusted the government to protect our cities.
We trusted the government to educate our children.
We trusted the government to protect our environment.
We trusted the government to protect our rights.
We trusted the government to watch guard our assets.
We have failed.
Now, we must swallow the bullet and watch the government create a debt that may never be repaid.
The only bright side to the story is that we will never have to apologize to those that will eventually be repaying this debt. The average life span of an America will run out three times over before we begin to make a dent in the deficit.
I suppose I will always wonder how could so many little people on main street be right and so few in charge understand what went wrong.