Thursday, September 25, 2008

U.S. Financial Crisis and Personal Accountability

Your actions have consequences. Most of us have been taught that since we were little kids. Greed is not good. The current financial situation is a great example of greed, stupidity and socialism.

1) Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.

SHOULD YOU PAY FOR THIS?

2) Optimism about housing values also led to a boom in home construction. Eventually, the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell, and this created a problem.

SHOULD YOU PAY FOR THIS?

3) Borrowers with adjustable-rate mortgages, who had been planning to sell or refinance their homes at a higher price, were stuck with homes worth less than expected, along with mortgage payments they could not afford.

SHOULD YOU PAY FOR THIS?

Each man, woman and child's share is $3,500. This is what your government is proposing.

Since I live within my means and spend accordingly, this makes me insanely mad. I get to pay for some joker who cannot manage their money? Think again.

Did you know where some of your money is going from United Airlines' baggage fees? The CEO's $30 million dollar retirement package; this from an airline struggling to stay afloat...$30M. Ethics of Tilton accepting this package aside...why even offer it?

Call your representatives in Washington - email their offices. Don't bail out Wall Street.

Federal Reserve - Ben Bernanke...polish up that resume. You should be fired.

Treasury Sec. - Henry Paulson...same.

SEC Chairman - Chris Cox - double secret probation.

President Bush - how lame can a lame duck be?

You broke it; you fix it.

2 comments:

  1. An ironic turn of mind might wonder if the US fell into the same trap it had set for the Soviet Union a mere two decades ago? That being on the losing end of an arms race it's economy could not sustain. What a tragedy if this arms race was triggered by a small band of two-bit fanatics.

    We'll see if this meltdown definitively answers the question of whether Capitalism is inherently unstable and self-destructive. Could Socialism be the fix that Capitalism needs, just as Capitalism is supposedly the fix to Communism's short-comings?

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  2. I'm not too well-versed in US politics, but having worked in organizations related to central banking I see a lot of wisdom in the proposals of people like Bernanke and Paulson. Ideally, I would prefer more laissez faire economics, but the US (and the world) is in a major financial crisis and there may not be many options left. Of course, there is the issue of moral hazard, where individuals and corporations just assume the bankruptcy lawyer or the government will bail them out when they get way over their heads in debt as a result of their stupidity. Don't go with the herd but steer you own course and you will see many opportunities in the midst of the crisis.

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