Today’s Financial News
I’m hoping, with baited breath, that today’s, the past weeks, the past month’s, financial news will be a wake up call to America…not to just those that sit at the financial temples in NYC and Chicago, or those that administer our government, but to everybody out there.
Today’s fall of the market was the single largest fall per points that we’ve ever seen, though it’s not the largest in percentage points. However, what caused this fall to happen? Instant gratification, and a congress along with lenders feeding that instant gratification frenzy….all fed by what seemed like free money.
Most people that I’ve known would very often not take a $1000 bucks from a stranger on the corner without thinking, feeling, Knowing that there was a catch. Most people might even pass it up because the deal just sounded fishy. When someone offers these same people a mortgage for a house that is clearly out of their price range, they take it. It just doesn’t make sense. Ultimately, I say that those who tried to get what they knew they couldn’t afford deserve what they’ve gotten, and as a whole, have created this mess.
Next, I want to personally thank the House Speaker Nancy Pelosi for possibly steering away votes for the bail-out. It wasn’t her intention I’m sure, but either way, a bailout is the last thing we need. Why? you ask…Lets look at it in simple, easy to understand terms that most with any type of foresight should understand (granted, I apparently just cut out 50% or greater of the population). If Fannie and Freddie Mac declare bankruptcy, billions of dollars by investors will be lost. Well, they’ve already been lost for a year now, because of the sub-prime dealings they’ve been doing for years, just ignored it. If/when bankruptcy is declared, the heads of those companies, and quite possibly some of the government reps, will go down with that ship. Those responsible will have to be held accountable. The companies get bought, keep their business plans in place, have a reorganization of the higher, and move on.
A bailout, however, just gives those companies that have mismanaged BILLIONS of dollars an infusion of BILLIONS of dollars, keep the same heads running the same crippled ships, and guess what…nothing will change. We’ll be back in the same boat we are in now, in say, another 5-10 years, whenever the next big set of sub-prime loans are bound to increase. The money gets lost, except to those few at the top, which they can just retire with a few hundred million while wishing everybody on their sinking ship farewell.
Ultimately, this country has just lost hundreds of Billions of dollars regardless of what we do. Thank those who chose instant gratification when voting for their representatives. Thank those who chose instant gratification when not budgeting their own money. Thank those who chose the easy route for a temporary solution instead of pulling the hard-6 and fixing the problem permanently. More or less, we have every one of those of us Americans who chose that the “ME” is more important than the “WE” in life, and those of us that just can’t be put out enough to do the right thing.
In closing, I would like you to view this video. I’m not a fan of Fox News, entirely too right-wing for me, but it brings to light who our next president could be, and addresses the issues of right now, today, Monday September 29th, 2008.
