Tuesday, October 14, 2008

Of Bailouts and Rescues

I guess I have been clear regarding the bailout, or rescue, or whatever it is. I don't like it.

And it ain't over folks. Congress is seriously looking at changes to the 401K system, which is becoming the foundation for many folks' retirement.

I don't think the government needs to own parts of the banking system and with preferred shares no less I see. Nationalization, pure and simple. And we can't even get it right. Put Warren Buffett in charge. PLEASE!

I don't think the government needs to buy paper that is nothing more than a symbol of monetary value. It's value is whatever is assigned at the moment, there is nothing to back it up at all, nothing whatsoever. If it was computer software we'd call it "vaporware."

I don't think I need to bailout all the thousands of would be homeowners who let their lust for homeownership overrule their pocket book. I am likely to find myself in an 'upside down' mortgage if the housing market continues its slide. No one is offering to help me out with that since I bought what I could afford and didn't take the snake oil or drink the Kool-Aid. Silly me for trying to be responsible.

I don't think what is happening here is really analagous to the Great Depression, or any other recession in the past. Times are quite different. We clearly have depleted and declining natural resources. Karl Denninger, who I have not read before, expects the worst. And he follows the market in all its delirious details.

I am a living witness to history, only not the happy kind like the moon landing of 1969. I expect the next several months to be the equivalent of riding the tilt-a-whirl and scrambler at the same time. Pass the Pepto-Bismol.

1 comment:

The North Coast said...

In 1933 we were an underpopulated country with vast untapped natural resources, beautiful newer cities, and new factories, plus healthy towns and hundreds of thousands of functioning farms. Additionally, we had a lot of social cohesion, with such low crime rates that most people never locked their doors.

Now we are overpopulated, our resources (especially oil) are tapped, our industrial capacity has been destroyed, most of our cities are in ruins while our farmland has been sacrificed to auto suburbs that have caused our population to be spread out in sprawl where nobody knows anybody and where you'll find yourself moved out of your house if you leave the place unattended for a week.

Yeah, things are different, alright.