I am amazed by the happenings of the last week or so. One day I watch any retirement funds I have disappear, which was not a big loss anyway, and then in two days the value is back. Then it goes again. I think it is still gone. Oh well.
I see the problems of the financial companies decribed on TV and hear warnings of depression coming. Depression. That was a big word just prior to my being born, but has not been seen in any major way since the thirties. When I think of it, the real kicker is the loss of jobs. A job is a big deal and an income even when thought of as inadequate, is basic to living.
No matter how bad it is predicted to be, the bail out thing rubs me wrong. Of all the institutions that have financial problems, the govenment comes out on the top part of the listings. It was said by Pres. Harold Lee that if you wanted to lift someone else, you had to be on higher ground. So how is any bailout by our government going to actually help for any significant period of time?
I have a mortgage, and I pay it every month. Most of you do also. There must be lots of people who do not pay and what does that mean?
Last night I went to a political open house where the person running for the U. S. Congress in my district was there and answered questions. He said that there were actually laws in force that mandated financial organizations to give loans out to a very liberal range of clients. If that is true, then that compounds the stupidity.
The reality is that plain old ordinary greed has had control of things for a long time. It is not new. Several people, some in the national congress, have tried to sound an alarm for several years. The bell did not ring loudly enough. Those that had a mandated reason to sound such an alarm, like the SEC, did not seem to care. They say ignorance is bliss, but it looks like bliss has caused a great deal of ignorance in this case.
Then there is the CEO and CFO compensation problem. Did I hear right that one man actually made almost a hundred million dollars in recent times. That is almost inconceivable. When I hear talk of needing to lure talent with compensaiton like that, I counter that that kind of talent, that is obviously held in conjuction with an immoral disreguard for the safety of consumers and the company as a whole, is not needed except in our prisons.
I guess I am not infavor of the bailout. But it seems to be almost forced upon the political leaders to offer to avoid the charge of "they did nothing." There seems to be no good way out of this mess and lots of innocent people are going to be hurt. The bailout will not help that in the long run, and will only cause the guilty to avoid the consequences that they would otherwise share.
I know that tough times could be there for us all, so hold on to your hats, and anything else you can get hold of.
Dad Clark
4 comments:
One thing that bothers me is that none of this is my fault! Like Dad said, I've also got a mortgage, and I also pay it every month. I didn't go after one of the speciality mortgages, although they were available. I haven't re-financed despite the huge amount of equity available in my home. I'm simply living within my simple means and now I'm being affected by the foolish actions of many others (both on the lending and borrowing side). -Jess
It's been an interesting thing for me to watch over the past year--and of course, more especially over the past few weeks. I am inclined to think that we have become accustomed to peace and prosperity and are over reacting to a known consequence of our (collective, not individual) actions.
I think about places around the world where our inner city violence is considered relatively peaceful. I also think of riots and lawlessness after natural disasters in our own country and I'm reminded how safe our lives really are and how fragile peace is. What is the difference between peace and chaos? The number of people who adhere to the rule of law.
I also think about hyper inflation rates that countries have experienced in the past decades. Look at zimbabwe and some of the other countries on here. https://www.cia.gov/library/publications/the-world-factbook/fields/2092.html
I expect that it is for scares (or real problems) like this that we have been instructed to obtain a years worth of food, and to set aside some money. Mostly this experience is just encouraging me to get physical assets and a gun...
I have heard, like Dad, that there are laws that force lenders to lend money to people who traditionally do not qualify for loans. I think who ever voted to put those laws in place ought to be held responsible. I also think that those people who took no action to reform freddy and fannie, despite numerous calls to do so in the past 8 years, should also be held responsible. Finally, I think people who bought homes they can't afford ought to lose those homes.
In the mean time, I am going to keep living like I have been, and try to be prepared for the time when the number of people who follow the law passes that threshold between peace and chaos, and hope that when that happens, I've done enough to take care of my family.
Mike
I second all of your comments! I was grateful that Bush stated his own personal views on the matter first; saying he was ultimately against any bailout. I think most responsible people are against this bailout. And to think Democrats are screaming that 700 Billion isn't enough! It's all a matter of living within your means. I don't like the idea that my tax dollars are going to bail out the irresponsibilites of others. I guess we'll see what happens.
And I think it's funny how McCain and Obama have reacted -- McCain stopping his campaign to help hash out some sort of deal and Obama going on the premise that a president has to learn how to juggle many issues at once, so he's not halting his campain to help with this "crisis".
Well, I'm not sure McCain's halting his campaign is truly what it is. I believe his "halting" is as much a campaign ploy as continuing. I'm incredibly skeptical. -Jess
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