Over the weekend I had a good discussion with my step-dad about the bailout and decided I should revisit the topic despite the USG passing the bailout bill into law.
One thing I didn't let fully play out in my mind was exactly how far a credit freeze would go. If the banks stopped lending every day American businesses would grind to a halt. My step-dad sells marble counter-top installation services and his job would stop cold--if people stop getting home loans, homes stop getting built and that means no kitchens are built in homes and that means no marble counter-tops would be sold.
And this is just one thread of the giant sweater that is the American economy.
The thing is, I'm OK with all American business stopping for a little bit. I think our system is royally screwed up if it so heavily relies on CONSTANT lending EVERY DAY. But what can you do? Come up with a better plan? Sure! But you can't just walk up to Henry Paulson and say "Yo, this system, it sucks."
You need the support of millions in order to make a change that the system itself would never want. See, Paulson used to run one of the banks he's going to be bailing out. Yeah, conflict of interest much?
Paulson wants his old pals to get bailed out and he likes the system the way it is. Everyone rich can stay that way and risk is passed onto the USG and, indirectly, the American people. This is the ultimate crime of the mega-corporations. They make themselves so "valuable" by being HUGE. But they are so huge they crumble under their own weight. So, they are bailed out by the system that allowed them to get so big in the first place.
So, something big has to happen that turns everyone against that system.
Make no mistake, if it weren't for the USG and Wall Street's breaking the rules of the free market, the free market would have failed.
The ONLY thing keeping our economy alive is this new money.
Doesn't that scare anyone else?
Think about that: the only way to save the system is to break the rules of the system. Our leaders (who allowed this to happen in the first place) are just propping this mess up with a stick, hoping the stick won't break.
The reality sure seems to be that if we don't suffer now for this, we'll suffer later.
Seems simple enough. But wait--if it's that simple, why did the Federal Reserve pull $630 billion from other central banks to help with our crisis only to have the USG pass its $700 billion bailout package? (Read about the Fed's move: http://thepete.com/…government )
Why would the bailout package be needed at this point? And why are some banks considering the possibility of not accepting money from the bailout at all? (Read more about that: http://www.guardian.co.uk/…et.bailout )
In America we are not adequately prepared as kids to deal with the absurd "complexities" of the economy. Every time I try to learn more about stocks, futures, derivatives, etc, my brain starts to hurt. My basic sense of logic is forced out of shape just to follow what these people are telling me.
It all seems like a big shell game and frankly, I think the market should be shut down. It's all just a scam--a game of slight-of-hand where the magicians move money from the many to the few. It's like Vegas times a million--or should I say 700 billion?
We need to get back to simple, honest business-doing. No more unregulated free market. Let's mix in some socialism and water this crap back so we don't get in over our heads.
So many times we in the "Blame America First" crowd (aka the "Lack of Blind Faith in the American System" crowd) are told that all we do is whine and that we have no solutions.
Well, I've mentioned mine. Shut down the stock market, introduce certain basic aspects of socialism that cover basic needs for people and serve as a parachute for certain huge businesses that get too big to support themselves. We have people dying because they can't afford health care. Yet we're letting criminals get away with it on Wall Street and we pay them to do it. I say we let everyone go to the doctor's including the banks and the corporations that fail. We'll look at them, fire who screwed up, get them back on their feet and moving.
They fail again? We break them up into their component parts.
No more corporate behemoths that bring down the entire economy when they fail.
Who ever thought up the current plan should be fired and forced to live with poor people for a while.
Of course, as long as we put up with this system, it's We The People who are giving the government and the banks and the corporations a blank check.
Mobile post sent by thepete using Utterli. One thing I didn't let fully play out in my mind was exactly how far a credit freeze would go. If the banks stopped lending every day American businesses would grind to a halt. My step-dad sells marble counter-top installation services and his job would stop cold--if people stop getting home loans, homes stop getting built and that means no kitchens are built in homes and that means no marble counter-tops would be sold.
And this is just one thread of the giant sweater that is the American economy.
The thing is, I'm OK with all American business stopping for a little bit. I think our system is royally screwed up if it so heavily relies on CONSTANT lending EVERY DAY. But what can you do? Come up with a better plan? Sure! But you can't just walk up to Henry Paulson and say "Yo, this system, it sucks."
You need the support of millions in order to make a change that the system itself would never want. See, Paulson used to run one of the banks he's going to be bailing out. Yeah, conflict of interest much?
Paulson wants his old pals to get bailed out and he likes the system the way it is. Everyone rich can stay that way and risk is passed onto the USG and, indirectly, the American people. This is the ultimate crime of the mega-corporations. They make themselves so "valuable" by being HUGE. But they are so huge they crumble under their own weight. So, they are bailed out by the system that allowed them to get so big in the first place.
So, something big has to happen that turns everyone against that system.
Make no mistake, if it weren't for the USG and Wall Street's breaking the rules of the free market, the free market would have failed.
The ONLY thing keeping our economy alive is this new money.
Doesn't that scare anyone else?
Think about that: the only way to save the system is to break the rules of the system. Our leaders (who allowed this to happen in the first place) are just propping this mess up with a stick, hoping the stick won't break.
The reality sure seems to be that if we don't suffer now for this, we'll suffer later.
Seems simple enough. But wait--if it's that simple, why did the Federal Reserve pull $630 billion from other central banks to help with our crisis only to have the USG pass its $700 billion bailout package? (Read about the Fed's move: http://thepete.com/…government )
Why would the bailout package be needed at this point? And why are some banks considering the possibility of not accepting money from the bailout at all? (Read more about that: http://www.guardian.co.uk/…et.bailout )
In America we are not adequately prepared as kids to deal with the absurd "complexities" of the economy. Every time I try to learn more about stocks, futures, derivatives, etc, my brain starts to hurt. My basic sense of logic is forced out of shape just to follow what these people are telling me.
It all seems like a big shell game and frankly, I think the market should be shut down. It's all just a scam--a game of slight-of-hand where the magicians move money from the many to the few. It's like Vegas times a million--or should I say 700 billion?
We need to get back to simple, honest business-doing. No more unregulated free market. Let's mix in some socialism and water this crap back so we don't get in over our heads.
So many times we in the "Blame America First" crowd (aka the "Lack of Blind Faith in the American System" crowd) are told that all we do is whine and that we have no solutions.
Well, I've mentioned mine. Shut down the stock market, introduce certain basic aspects of socialism that cover basic needs for people and serve as a parachute for certain huge businesses that get too big to support themselves. We have people dying because they can't afford health care. Yet we're letting criminals get away with it on Wall Street and we pay them to do it. I say we let everyone go to the doctor's including the banks and the corporations that fail. We'll look at them, fire who screwed up, get them back on their feet and moving.
They fail again? We break them up into their component parts.
No more corporate behemoths that bring down the entire economy when they fail.
Who ever thought up the current plan should be fired and forced to live with poor people for a while.
Of course, as long as we put up with this system, it's We The People who are giving the government and the banks and the corporations a blank check.
Orignal From: Clarification and Confusion on the Bailout
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