I said it would not work!!

but no one would listen...

Published on October 6, 2008 By ShadowWar In US Domestic

I have to say I am feeling a little of both self rightious and down hearted. I decried the Wall Street Bail out or rescue or whatever term you wish to call it (call it useless now!!) when I heard about it and researched what I could. Why bail out a bunch of people that basically got themselve into this problem to begin with.

I said to my friends, who of course get tired of my political rants, but listen anyway as form of entertainment, that this stupid, moronic bailout was not the way to fix things. That the way to fix things is to let the market punsih those that did not make the smart chices and to let the market correct itself. But did the Congress listen to me! NO of course not, I am just some little guy on a blog and working a 70 hour a week job to make ends meet.

They told me that the average citizen would feel the crunch if nothing was done, well they did something and I am feeling it worse! The market is diving faster than the hindenberg on docking and they say the markets around the world are doing the same. Well they (the wonderful smart people in Washington, Congress and the President, insert sarcasim here) said all would be well, all they had to do was throw money at these people who made the mess to begin with and all would be well with my 401K and my future. What!!??? Give money to the very people that made the mistakes to begin with? Buy them out they said. Buy them out? You mean they make money and then nothing happens to them?

Here is my solution to this mess. First, DO NOT PUT ANY MORE MONEY into the bail out. Let the market fall or rise or do whatever it wants. And then launch an investigation in Congress to find out who or what was responsible for the credit problems to begin with.

Second, I will be looking at the market to see what stocks have fallen the most and look like they may recover and buy my little heart out. What a chance to make some money! But you did not hear that part, I want to make the money not you!

And last, stop listening to the people who are the ones that thoght that 700 BILLION dolars would fix something. VOTE EVERYONE of them out and replace them with people without any experience in Government, they can't do any worse than those that have spent 35 years in.

What happened to good old citizen representation? Oh well.. gotta go check the stock prices and see what deals I can find. Oh and at least Trucks are real cheap now, maybe Ill buy a new Chevy 2500 HD Crew Cab and put some money in the credit world..

Comments

mvaunhalen

on Oct 08, 2008

As a former Chevy salesman, I like your idea to buy a new 2500.

I hold some similar views. Check this out.

I know in the past that lowering the interest rates have made a positive difference in the economy. This was the next step in the big plan they just took today. But this is an entirely different situation, and I don't see the logic in it.

The problem with credit is that the banks don't trust each other enough right now to lend money to each other. So how does lowering the interest rate (lowering the projected profit a bank stands to make) fix this. Oh, I see, you mean I still have the same risk, but will make less money. Oh gee I'm game now! Give me a break! Banks will start loaning to each other soon enough, once they've figured out who's solid and who's not. I think lowering the interest rate could potentially prolong it.

Before anybody responds, let's get this straight. The fed lowering the interest rate effects the loans banks make to each other, not your mortgage, not your credit card, not your small business loan. In usual circumstances it would, in an inderect way, but not this time.

The step to lower the rates, in my view, came too early. This move should've been made after the banks and Wall Street begin to stablize.

Dr Guy

on Oct 09, 2008

It will in time this time as well. But as you point out, it is not only the wall street investors that are tucking their head in and waiting, but banks. The Fed rate is not meant to be an immediate change in the market, but to work its way through the market slowly. That is by design. There is enough volatility in the market with arm chair investors now. We dont need the big players to start reacting irrationally as well.

mvaunhalen

on Oct 10, 2008

True Doc., I just don't see how telling banks they are going to make less money lending money to each other now will be an incentive to get credit moving again. It just sounds backwards to me.

Dr Guy

on Oct 10, 2008

telling banks

Telling banks? I dont think anyone can tell them anything.

But this too shall pass. Corporations are not like people in one very important aspect. They have an inertia that is difficult to overcome. Those that do not overcome it, dont stay around. While the market has wild swings, the banks amble along at a slower pace.

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