Time to do nothing

             To see the congressional committee grilling a Walls Street Banker/Investor/CEO, you might get the feeling that things were finally getting straightened out on this financial roller coaster we have been on as of late. Don’t hold your breath. It appears the dog and pony show will be going on for quite a while. After the first array of why didn’t you guys see this coming? It appears to the man on the street that nothing will come of this round of interrogations. Like the ill fated call to, round up the usual suspects! There will be no pound of flesh for those who have lost millions, while Washington slept.

            Actually to say they slept would be wrong. They instigated, promoted and put into place all of necessary items for the crisis to take place. For it was under the watchful eye of the current group both Democrats, Republicans, and Leaders that what went on in  Wall Street, went on as long as it did. They told the banking industry that they could marry the investing industry and that they all wished them well. And for a while they had a pretty good marriage. But like all marriages, there are rough times and this housing crisis we will eventually find is not a mortgage crisis but a credit crisis. They just spent more money than they had for too long and it caught up with them and us all.

             Money is sufficiently drying up for borrowing everywhere. From Asia to America, it seems no one has any to lend. All tapped out so to speak. Banks in Europe as well as America have lent as much as they can, and unfortunately the paying back is a bit slower than they expected. You would think that the financial 24 hr channels, all the Wall Street entrepreneurs and the government could put Humpty Dumpty back together again. You would be wrong. The fall has been hard. Russia and Brazil have actually shut down their markets to try to slow down the free fall. Other countries have called time outs, and our own market, which I thought had brakes on it that slowed it down, has plummeted to new lows as well. Accordingly all the profits earned in the last ten years are gone. Ouch.

            So since regulation has been tossed for the more modern plan of letting these groups police themselves as is the main impetus to “deregulation,” what are we going to do? The only thing we can do. Just one thing; make sure your funds are in a Bank that has FDIC insurance, pass the popcorn, put your feet up and watch with amazement how much money some folks made while you were just trying to fill your tank and eat in the same week.

            It would be different if our money was based on say a fixed item; say gold? But that went out with Nixon. Our Government has the ability to print as much as they need. All it takes is the full faith and confidence of you the consumer to say, “Works for me!” Keep saying that, clicking your heels together and going there is no place like home, there is no place like home and we can get through this. Remember that when America catches a cold the rest of the world gets the flu! This too will pass, but in the long run what it will cost us, no one is sure or even venturing to guess!

One thought on “Time to do nothing

  1. I heard one journalist report once last week that one CEO wrote another an email saying, “let’s hope we’re out of this mess,having collected our millions before this catches up with us” Does anyone know anything about this? Even with caps on CEO bailouts, they still are going to make millions. Meanwhile, a man who lost his job two months ago killed not only himself but his whole family in CA today. It’s getting more and more difficult for me to say we live in the greatest country in the world. For who?

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