I could not have timed it better, it seems. I wrote yesterday about the two reasons why we are on the road to economic disaster, and just in time to prove my point… The Government steps in and rescues the second biggest bank in the country. (after Bank of America) by giving them a big ole sack of money. As I have said all along, I really do not think that we are on the road to “Damascus” here. I know that no one (including our newly elected President) is going to do the things and make the real choices that have to be made to right this sinking ship. But as reported in this morning’s Washington Post, “The New Dealers were right all along” How so? They were right in placing hard walls between banks and investment houses. Now after losing sight of that fact, and because of nothing less than greed, we are unable to tell the difference between the chicken and the egg!
This is exactly what I meant when I wrote that we have screwed with the system so badly that no one can now tell you how it runs. They will apply what they learned in school, such things as “supply and demand” but outmoded rules like those are worthless in times like these. Why? Because the fools have, in order to make a quick buck, started playing with the system and causing, for an example, with fuel, adding on new ways to profit on the ups and downs of that commodity. by selling shares based on what they think will be the case in 6 months. It was not enough to just have lots of money nooo.. They wanted to have even more. Then they go out and encourage you and me to buy such products like mutual funds based on oil and land. The money is coming in from both ends of the monster! The banks, selling you the (now) worthless paper and the investment house using the same money thinking of even more ways to get more profit for their pockets and shareholders Is it no wonder that the monster is now eating itself?
Now the government has no choice (and by the way, it was the government that changed the laws that created this monster and many others like it) Of course, they will have news conferences to say that “It’s easy to place blame, we need solutions” but in the end it will be you and me (thru the government) to not only clean up after this “creation” but to continue to feed it!
I will leave it to all of you to wonder if anything is truly to “big to die” and that goes for banks or Automobile companies. It may in fact, be as they say.
The truth is this.. We have to start back at One…. If any of us are going to survive long term. We cannot continue “Living for the Citi”