Saturday, September 27, 2008

Depression, recession or ?

WARNING: Another Political posting

As I write this it appears that the Republicans and Democrats are close to a compromise on the bailout plan. Its called a bailout plan because it is bailing out wall street. I'm not for that but whatever it takes to keep this country out of a deep recession I would be in favor off. Another thing I don't like is the fact that the bill contains 6 billion in Pork Barrel spending. 6 billion. Can't Congress, just for once worry about the good of the country overall instead of "Oh ya, I'll vote to keep us out of a depression but you'll have to let me at a few Pork Barrel items of my own in return". The Bastards; that is why I detest them so much. Some Pundits are saying that this bill will cost $1.5 Trillion rather than a mere $700 Billion, as advertised. My other concern is how they limit the rewards going to the bad CEO's who got us in this problem to start with, commonly referred to as "Golden Parachutes". Probably the CEO's that will escape these limits will be the ones that have provided the most "Perks" to our Congressmen in the past. Sorry to sound bitter but that is how I feel.

I don't have any type of suggestions to give our Congress as they wrestle with this problem as I am certainly not smart enough to understand the problem let alone the solution. It grieves me to have to sit back and wait for the experts to solve these problems, but I must. It is Congress's job to fix this problem as they are the ones that let it happen. I sure hope they make good decisions, now, after years of looking the other way, and we have not waited too long.

Below is an interesting editorial that I located on a blog entitled "The Big Picture"
I was thrilled to publish this at Barron's. Here's an excerpt:

To: Washington, D.C.From: Wall Street Re: Credit Crisis

Dear D.C.,

WOW, WE'VE MADE QUITE A MESS OF THINGS here on Wall Street: Fannie and Freddie in conservatorship, investment banks in the tank, AIG nationalized. Thanks for sending us your new trillion-dollar bailout.
We on Wall Street feel somewhat compelled to take at least some responsibility. We used excessive leverage, failed to maintain adequate capital, engaged in reckless speculation, created new complex derivatives. We focused on short-term profits at the expense of sustainability. We not only undermined our own firms, we destabilized the financial sector and roiled the global economy, to boot. And we got huge bonuses.
But here's a news flash for you, D.C.: We could not have done it without you. We may be drunks, but you were our enablers: Your legislative, executive, and administrative decisions made possible all that we did. Our recklessness would not have reached its soaring heights but for your governmental incompetence.

Barry Ritholtz is the author and his blog is The Big Picture. Click on the hyperlink and you will see the text above but below that you can find the full PDF copy. Worth reading as it is one viewpoint of what went wrong and he blames Alan Greenspan for most of the problems. Interesting!

No comments: