Update: Perhaps a slight respite. Bail out fails as the House votes it down. Not that this is over.
So after thinking about this bail out situation a bit longer I still say no to the bail out. First off I have yet to hear anyone who can say what will happen if there is no bail out. I hear how money will tighten and this is bad. But is it? I mean isn’t loose money the reason for this bail out? There will be no liquidity. Humm. The basis of credit is that by investing (loaning) someone money that they in turn make into more money where you then get more back in interest. Do you think even in a tight market a good plan won’t get funded?
The other thing that bothers me is the fact that we all must once again pay for the excesses of others. Hey you can’t afford a house too damn bad. If your a bank that loaned to someone that couldn’t afford the house again too damn bad. A business gets the money to start yet has no real business plan and that’s my fault how? The right to fail must be put back into the system folks.
We continue to hear how bad the economy is yet I went to dinner Friday night and there was a line out the door. It could have been any restaurant in this or nearly any other city in the US. The parking lot is full of new cars and SUVs. Everyone is running around with IPODs and paying $300 to $400 dollars for XBOXes and Playstations. Crises? I don’t see it. How many people do you know that own a $1500 or more flat screen HD TV? Yes there are a lot of homes for sale but with asking prices way out of line with their value.
What we have is not a financial crises but a crises in poor judgment.
We already see the political wrangling going on with this bail out and if you think it will be passed without benefiting a bunch of thieves think again.
Nope I want to see more failure in America. I was to see more personal responsibility and you won’t get that by bailing anyone out.
George Will said today roughly that once we asked government to behave like families and balance a budget instead families started acting like government and spending what they didn’t have. Not an exact quote but you get the picture. He is absolutely right.
When anything is artificially propped up it will create a bubble. Lets stop propping thieves up and start asking people to buy what they can afford.
There is absolutely nothing wrong with taking risks. There is something wrong with asking others to pay for your risk when they fail.
Anyway my two cents.
Update: lets add 25B for the automakers.
Who’s going to pay MY house off. Maybe I should just quit paying on it.