Saturday, September 27, 2008

THE COUNTDOWN

Do you hear the clock ticking on the rescue/bailout/restructuring? It is ticking and I don't think this market can sustain another week with no clearly defined solution. I have been very clear, bailouts are the wrong thing but this situation is extraordinary and requires government intervention. It most certainly will cause inflation and we must deal with that, but we are on the brink of the ruin of our banking system.

I hate the mere idea of a bailout and think we should start a grassroots effort to demand that Congress examine the REAL reasons behind this collapse. So much attention is being placed on bailing out the rich on Wall Street. I am by no means discounting the role that the greedy on the Street played in this mess. I am however shocked, amazed, and angered by the fact that the idiots that overextended themselves by borrowing money to flip houses that they could not afford are getting sympathy instead of blame. Ask yourself this question "If Obama believes in a bottom up fix with his economic plan, why does he not place blame on the hard working middle class member that got out there and borrowed too rich for his means?" Obama placed blame on lack of regulation for the subprime mess. All of those greedy companies got out there and tricked those poor hard working Americans that did not have sense enough to look at their own balance sheets and see that they obviously could not afford the house they were borrowing the money for. Was that hard working middle classer using "leverage"? Yes he was and that was irresponsible. If we give these people a bailout/handout/freebie will they get their credit cards out and repeat the mistake? Most will. Don't dare tell me that only the rich are addicted to leverage. Obama is simply playing CLASS WARFARE by blaming Wall Street and allowing Main Street to get a free pass.

We need a grassroots effort to request that Congress cut their own pay in half for the next two years. Why should they continue to make their current salaries when they have been asleep at the wheel and spending like a hoard of drunken rat bastards? We need accountability and it needs to start at the top. We need to get good common sense back to Congress.

I am amazed at what I am seeing on television today. One firm acutally had a commercial stating that they are committed to being one of the best capitalized banks. Can you say "DON'T PANIC" Fox is not showing their normal "Cost of Freedom" business block. They have Cavuto on during that time slot examining the crisis. Anxiety is at an all time high. I have never seen anything like this in my lifetime, but we are going to get through this. I believe that we can get over this economic "sickness" without it leading to the death of life as we know it.

Lets talk about what happens if we get the $700 Billion infusion. It will cause inflation, but will not be the end of the world.

1 comments:

captain caveman said...

It will cause inflation, but we have lived through many inflationary times and the U.S. Economy has gotten stronger each and every time. Those counting the U.S. markets out are going to be sadly mistaken.