I’ve been watching the news lately and it seems like every time Obama opens his mouth, the stock market goes down. On the other hand, every time there’s an iota of evidence that the Feds might loosen regulations on Wall Street, or that the Feds are going to buy up worthless crap, the stock market goes up.
It’s obvious why the stock market went gangbusters yesterday. Geithner basically came out and said, “Hey slimy Wall Street bankers, we’re going to buy all that worthless collateralized debt (mortgage-backed securities) using taxpayer money.” So we’re taking bad investments made by greedy, rich executives and paying them off with middle-class tax money. Shoot, that would make me happy, too.
If Geithner had said “All of you consumers who have credit card debt, we’re going to buy all that debt using taxpayer money, and if you can’t pay it back, we’ll guarantee it” every consumer in America would have taken the deal. There’s no downside for Wall Street in this deal. This “private investor” thing is a joke, because the government is going to loan these investors 93% of the money to invest, and if the toxic assets don’t make money, they don’t have to pay it back. So basically it’s the federal government using our hard earned dollars to help private corporations clean up their balance sheets. There’s nothing “private” about it.
This is the ultimate Robin Hood in reverse scenario. In Robin Hood, Robin was stealing from the government and giving the money to the poor. In this case, the government is stealing from the middle class and giving it to corporations who don’t deserve to be in business anymore.
We’re breaking our own laws in the process. These corporations like GM, AIG, and Citi shouldn’t have been propped up. They already proved they can’t make a profit even in GOOD times, so what makes us think they will in bad times? This is exactly why we have bankruptcy court. The court could have helped them restructure and/or sell off their assets. The economy would have taken a short-term hit, but smarter, more ethical companies would have benefited from the bankruptcy of the dumber, less ethical companies.
The best way to screw your economy is for the least efficient bureaucracy on the planet to start tinkering with things. The federal government is a bumbling behemoth of inefficiency, corruption, and greed. For them to sit in judgment over Wall Street is startlingly hypocritical and extremely unhelpful.
I’m disgusted by the Americans who have chosen to blame everyone but themselves for the problems we have. The “Blame America” crowd is the most unpatriotic, despicable contingent of our population. They blindly contribute to the problems, perhaps even voting now and then.
The fact is, this is still the greatest country in the world, and if we can get our government to butt out of things they have no business messing with (under the Constitution), we can stay that way. If not, it may be that America has peaked and the decline is coming.
Let’s hope the American people can grow a brain.