Hopefully as we proceed forward we don’t learn that light is an oncoming train! Sometimes you see a great opportunity and you wonder why no one else has thought of it first. I’m sure somewhere someone else has this idea in their head. I have had a number of you ask me what my personal thoughts are on the 700B Bailout plan that congress is toiling over.
I think this is one of the greatest opportunities ever! Why? Well this might be a way for people to really understand finally how money works. I know that most of my posts in the days past have been somewhat of doom and gloom. Its the truth, and its impossible to deny the inevitable.
The general idea is that there were some people that did not understand how the mean green finance engine works and as a result of this they got into loans that now put them in an upside down position. The government has been hearing from Wall Street that there needs to be more liquidity in the market place and that 700B will help the problem. In essence its just a primer for the economy to stabilize and return to normal.
There is no doubt in my mind this is needed. Argue just to argue is not the solution to the problem. For those who actually understand the market and its current crisis they all agree something should be done. Its the blundering village idiots who think they understand the market that want to complicate things. In reality they probably only see their stock portfolio go down and in the end are looking out for themselves.
This is bigger than you or me. (This is all of us!! Plain and simple.)The government wants to help bail out all those people who are financially irresponsible. As my friend Bill Radtke mentioned over lunch: “I’ve been responsible, I’m not in debt! Do I get a bonus if they are getting bailed out?”
Why not? If we are taking the money out of the taxpayer’s paychecks, why not tell the taxpayers what the return on investment will be? I think paying your dues and then bailing people out are two different things. I mean isn’t that what the banks call consolidation loans?
So how about asking the American public to pay up via taxes with a promise of a 6% return per annum? I’m on board with that. In fact, I might want to lend more than my fare share so I could make a nice return!
Great idea Jeremy. I think a rewards and penalties system is long overdue myself. The only problem for this is again we are asking for more gov’t. This is clearly not what our founding fathers wanted. Many people want more gov’t in substitution for man’s weaknesses. The gov’t is a piece of paper really. It is run by humans. Humans who unfortunately have had no penalties for their misdeeds. They are being given more money to do it again and on a grander and much more severe scale.
I know your ethic level so I already know the answer to this but if you had no downside or no recourse wouldn’t you too run amock under the protection of a gov’t?
I simply do not think they should be trusted with my money (reward for being responsible), they have already proven they are irresponsible.
Americans pay enough taxes as it is. The federal budget has to be slashed dramatically. To maintain the American empire costs about $1 trillion a year. That in itself would help. But then again when we consider the people in high positions that make decisions, that won’t happen