Here is a good news, bad news joke for you. Being an optimist like myself I am sure you want the bad news first. The bad news is the economy! And the good news is; we still have one! It’s amazing and I do mean amazing that things are still functioning at any level of normalcy given that fact that we have shelled almost a trillion dollars we don’t have, too people we don’t know, to use for things we don’t control and because our President and a host of people feel it is necessary! I feel like a five year old kid that just made his first purchase of candy bar and as I look at this tiny thing find myself asking; is that all I get for my money?
Last night on 60 minutes, Barney Clark and Secretary of the Treasury Paulson explained our current dilemma, in words that gave very little reassurance that these fellows have any idea what they are doing. Seems Clark got the bailout money for Paulson, Paulson in turn gave it to banks, and the banks, kept it! When questioned if Clark could make Paulson make the banks spread the money around, he said no. No. It appears because the Bush appointee is above the law; as he requested in his bailout no one can question what he does with the money. And now we are stuck with whatever he decides to do regarding the bailout funds. There are reports that some of the money actually spent cannot not be accounted for? Hmmn.
Before you go saying, those Democrats! Just remember both sides of the aisle had a lot to do with the decisions or lack there of that put us in this mess. Blaming the Democrats is tantamount to focusing our ire now on the fact that our car has a flat tire, even though the other three are firmly stuck in the mud and we aren’t going anywhere anytime soon. But hey, some one has to take some blame.
Aha, the beauty of deregulation; no one is going to take the blame. You can search all you want for fall guys, but it appears the lesson is as following; you can not win a war on terrorism when everyone can be a terrorist; nor can you win a blame game with someone for the economical mess, when we all spend money! Your measly ten grand of dental credit card debt somehow in the eyes of the government is as much a part of the problem as two billion in failed market securities the bailout is going to cover for the bank for AIG. It is the perfect ponzi scheme of passing the buck. Only instead of it being a money scheme it is a credibility scheme. My credibility is passed on to you and you sell with to the next guy who uses that same credibility to sell the same bill of goods; the beauty of marketing! What about the regulators? In a world of deregulation there are no regulators.
Remember the Enron debacle? In the aftermath we called upon our regulators to wake up and make sure this would never happen again and they said they would! They lied. Early reports are indicating that they felt everything was fine I mean after all wasn’t it? Guess who has egg on their face. Only problem is that while they are embarrassed and get pensions and bonuses for service work well done, you and I and the man on the street face paying back a lot of debt quite frankly we will never be able to pay back. (More to come)