If you have it on your iPod, you could play Three Little Birds by Marley as you read this to take the edge off…
This weekend, I walked in the kitchen to find the TV yelling the latest chapter in the American Financial Debacle. I was prepared to tune out the drone when I heard Ted Nugent start his rant. And you’re not going to believe this: he got my attention. He was talking about responsibility, accountability, and how he wouldn’t trust congress to clean his dogs’ kennels. How could he be an (admittedly) simple, uneducated musician, yet even he could figure out that a trillion dollar buyout by our government doesn’t exactly support a free market system?
I read an article this weekend in Portfolio magazine by Michael Lewis. It absolutely captivated me. Michael is a brilliant and entertaining writer. And he makes sense. He says things like this:
To blame the people who lent the money for the real estate boom is like blaming the crack dealers for creating addicts.
The party is over. I’ve been waiting for a long time for accountability to matter again. I was beginning to think I was living in the twilight zone. Hello accountability, goodbye entitlement. My buddy Kim at Accidental Mommies said it pretty well:
I know that doesn’t help the banks when faced with all the bankruptcies and foreclosures, there is obviously a problem, but too many people are pointing fingers at the banks and the gov. when they need to look in the mirror.
I couldn’t have put it any better.
If you have time, this article by Michael Lewis is such a good read.
Also - I think we could get some good deals on Lear jets soon.
6 Comments so far
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I blame, in no real particular order:
1) loan originators
2) loan grantors
3) Phil Gramm
4) w
5) Nancy Pelosi
6) McCain
7) Paulson
9) securities re-sellers
10) rating agencies
By sauerkraut on 09.30.08 5:35 am | Permalink
The problem with no buyout is that if we don’t, the 1930’s are going to look like party time. Congress needs to step in and stop it - without rewarding those who made it happen (which is lots and lots of people). But if they don’t, we’re all going to lose a whole lot - hell maybe everything. my only debt is my mortgage and my student loan. That’s it. I own my cars. no credit card debt. I have restarted my 401K (after letting Ex take it all in exchange for the house). I had (HAD - I’m afraid to look now) 15 years of savings in college plans for the kids that was, sadly, probably only enough for 2 years of college. Maybe now we’re down to 1? It will all get wiped out or greatly diminished if Congress doesn’t do something. Yes, the country screwed up. So should we stand back and let the hurt take over? That worries me more….
By The Girl Next Door on 09.30.08 6:00 am | Permalink
Girl Next Door: It sounds as though you believe that our currency could melt down without government intervention. The chart of the dollar has been sick, it’s true, but I don’t believe it’s going to disintegrate. In fact, it’s been slowly getting stronger.
You my friend, have been one of the accountable people. And I have to believe you will be rewarded for your integrity. That is what our country was founded on. I’m in the same boat as you. And like you, I’m scared as heck. But I would rather face the pain now to preserve capitalism and avoid socialism.
By Myra on 09.30.08 4:58 pm | Permalink
Thanks for finding the Lewis article Myra and for bringing some sane thoughts to the table.
By kathleen on 09.30.08 5:02 pm | Permalink
Amen, sister. You know what’s funny to me? I hear, “WE NEED A BAILOUT!!” and when Congress says, “Okay. We’ll talk about bailing you out”, the market goes up. Things look better. When Congress says no, the market crashes, and ZOMG! We’re all going to lose everything we have!!
To put it into perspective, the day that Congress said no to the bailout, the market went down less than 7% compared to Black Monday when it droppes 22%. I mean, COME ON, PEOPLE. This crisis is very real, sure, but running around like Chicken Little isn’t the answer. Nor is a bailout.
A free market will take care of itself.
By Steph on 10.01.08 3:00 am | Permalink
Main thing is not to do anything out of a spirit of fear. Look at the congress and reporters. They are fearful and acting as such. Rather, implore them (yes speak up) to act out of wisdom. It’s not a) 700B or b) Great Depression II. There are alternatives being shared by congress people, economists and consumer advocates.
Two notes:
1. If you want to know how the economy is doing, don’t watch tv, go try to get a parking spot at Walmart.
2. The claims of another Great Depression are mis guided. Our economy is much more resilient and diverse than it was 79 years ago. (Really, do you think we haven’t learned anything in 79 years?) Just to name a few: FDIC Insurance, service (non-cyclical) vs. manufacturing (cyclical) based economy, 1 in 100 agrarian workers per capita vs. 1 in 5 agrarian workers per capita (coupled with a drought), and better trade laws.
Just don’t fear!
By daniel on 10.01.08 7:11 am | Permalink
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