After much anxiety these past days, I am pretty much against the bailout unless it goes directly to citizens who are losing their houses or who are losing jobs based on the decisions of the greedy barons. Those who made 6+ figure salaries and bonuses and actually had authority to make these greedy decisions should be sent home to lick their wounds and use this as a learning experience. There is no doubt in my mind that many of them have sheltered most of their wealth prior to this debacle anyway. I do not trust those on Paulson's team who decide who gets this big bag of money. I do not like the fact that they are giving the greedy and stupid a pass while those banks and investment firms that were careful and honest will not be rewarded for their contributions to keeping our economy stable. Maybe the money should go to those smaller banks and investment firms who are not in the red and let them decided which 'toxic' assets they wish to purchase at a discount. Let the Feds work on regulation---again!!
Having written the hard line above, I must admit that I have the luxury of not having to live off of my small stock portfolio which has already lost 30%. I have a small retirement salary that is insured by the feds as does my husband, our health insurance is insured and transferable and our daily needs have been reduced greatly in retirement. Our home is paid for. Our biggest expense is property taxes, but the value of my home has fallen 13%---so maybe in a year or two I will be rewarded by that.
Yes, I accept that inflation will rise rapidly (which it may do anyway) and that affects those who are not as lucky as I am. Perhaps we can use this money to stimulate that side of the economy, subsidizing fixed needs--let socialism rear is ugly head. I also accept that heating oil may triple in costs as will food. I also realize that my portfolio may disappear. Those who, with pain and sacrifice, lived through the Great Depression came through and were wiser and stronger. Maybe this is the dose of medicine America needs when we complain about how expensive it is to heat our swimming pools and eat in 4 star restaurants and plan those huge weddings and put gas in our luxury transportation vehicles. We already use most of the worlds resources per capita and now is time to pay the piper for that lifestyle.
a good post. tabor. oh, dear. i dont even know how i feel about all of this yet. it is such a difficult situation and decision. it is hard to gather accurate information when you don't trust those who offer the information and those who are involved don't even know their own liabilities. it is extremely risky, no matter which way we turn.
ReplyDeletein general, i am amazed at how much the american public and congress have put up with during these 8 years. there was so much indignance regarding clinton's sex life yet everyone on the hill has seemed detached from the raging blisters left on the american people, our country's image, the economy, our positioning in the world, etc. by this administration. where is the outrage, the demand for accountability? the dilution of the issues has been quite strange to observe. maybe the outrage will rear its screaming head in 39 days! let's hope so.
I have to admit that I feel that the high and mighty and the big and powerful are going to be the only ones that will survive through all this.
ReplyDeleteSad sad sad what is happening.
Bear((( )))
Tabor at the moment I do not know where I am. The small amount I had in the stock market I pulled out 6 months ago. I have a small savings in low fixed account. The interest in the past was always enough to satisfy my much simpler life style. I find I am comparing prices on everything and being more conservative in every way.
ReplyDeleteI have had the luxury in past years of all you mentioned. Not anymore. But I am at an age where I do not miss it at all and just enjoy my smaller home and gardening and reading. Enough said.
You shared all the issues.
And pay, we will, even those of us who did not have that lifestyle before.
ReplyDeleteI agree with you about the buy-out.
It's scary how quickly we forgot the lessons of the Carter years in saving energy, and thereafter started gorging under Reagan, going to SUV's with increased speed-limits on all the highways. It's always been discouraging to me how hard it seems for us, as a nation, to learn from experience.
ReplyDeleteInteresting that you, who are much closer to Wash. with experience of working there, imply by your being against the bailout, that we have a choice about this. The way it's been framed by the news I read, is that unless the govt. steps in and does something, we'll have another depression, where credits will be frozen, and small businesses fail.
Your post suggests to me that there might be another way to look at it.