Wednesday, November 12, 2008

Thank you to Vets & A Financial Rant

First...with all the celebration for Lorrie's I forgot to include this yesterday.

THANK YOU! ...to all the men and women who are in or are veterans of our armed forces.

Now...a bit of a financial rant. Below is a picture of one of the world's biggest idiots - an insult to idiots everywhere.

Since when do we in a free market society bail out those who are failing in business? The latest is we are going to bail out people who can't pay their mortgages, the mortgage companies, credit card companies and Detroit auto makers. A friend of mine who came to the USA from Russia said she is very nervous about all the bailouts and her words "socialistic" talk. "It didn't work in Russia. Why would it work here?" She has a point. I think people don't want to go through the pain and cost of dealing with the problems head on which leads to this. Babyboomers are typically pain averse and want the quick fix. Here are some costly examples...

A) People who "can't" pay their mortgages - why did you buy the house you cannot afford? why did you "take a chance" on rates staying low when you know that is a real risk? Did you not read any of the many signature papers you had to provide at the closing?

Let them loose their homes and ruin their credit. This is the cost of taking that chance. Accountability is a bitch.

B) Mortgage companies who took chances - why did you give the couple making $80,000 a ARM loan for $400,000 when you know they cannot afford it? Too dumb to run your company...you lose your company.

C) Credit card companies - wait...let me get this straight...the same people who charge us 22% interest for 20 years on purchases we probably shouldn't have made need help? What's the punchline? Again...too dumb to run your company trying to sponsor bowl games and giving every 8 year old in the USA a credit card...you deserve to lose your company and lose billions of dollars.

D) Detroit auto makers - you make poor quality cars that are gas guzzlers, spend billions to advertise with no innovation and you want us to bail you out too?

I'm not sure if this is supposed to be funny, sad or make me puke.

Memo to the media and the US Treasury... the general definition a rule of thumb that recessions are often indicated by two consecutive quarters of negative growth (or contraction) of gross domestic product (GDP). Newspapers often quote this rule of thumb, however the measure fails to register several official (NBER defined) US recessions.

Technically...we are (and have been in) a recession for much of 2008 and we are entering a period of depression.

Way to go.

1 comment:

  1. Hi Bob - I'm totally with you. I support a free market, and I want to smash my head against a wall every time I hear a supposedly "wise" government official say that the "free market" has failed and we need the government to step in. Our system is nowhere close to a true free market and getting miles farther away everyday. Frustrating is a severe understatement.

    I say send everyone seeking a bailout to Iceland (which is currently seeking loans in excess of its entire GDP) and they can all whine, beg, and demand of one another until they implode.

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