Saturday, December 27, 2008, 03:17 AM - Economy
Posted by Administrator
You HAVE to see this. The other day I was perusing the news and came across an article about overhauling the compensation of Wall Street executives. In that article, there was a bit about how the top brass at Goldman Sachs, Merrill Lynch and other such firms were pledging not to take bonuses this year.Posted by Administrator
Well, I'm glad to see these people are so willing to sacrifice themselves. I mean, pledging not to take bonuses after leading their companies to the edge of financial ruin, now that takes some real courage, doesn't it? It's good to know we have the kind of leaders in our nation's big financial firms that will not take a bonus when their company is on the verge of bankruptcy. Isn't that just so brave of them? I mean, no matter how tempted they may be, they have pledged not to take bonuses. Isn't that amazing? I'm just so proud of them, I could cry. No wait, I believe the urge I have is to puke not to cry.
Have you had just about enough of all this government bailout business? Whatever happened to good old fashioned capitalism anyway? Isn't potential failure simply part of the risk when running a business? Isn't losing out to the competition always a possibility? Isn't having a bad year something that is going to happen once in a while no matter what? Aren't all these companies run by highly experienced, highly intelligent, well educated, business school graduates? Haven't they been taught how to plan for their company's future? Don't they know how to manage cash flow and capital so as to be prepared for downturns in the business cycle? So when did running to the government and begging for money become part of everyone's business plan anyway? And just how big of a company do you have to be to get such privileges in the first place? Are there any small business owners out there that are going to get a chunk of this bailout money? I highly doubt it, but why not? What's the difference? My savings account could use a bump up in its balance, why not throw me on the bailout list? I can hurry and run up a bunch of bad debts and fail as a business owner if that's all it takes to get a piece of the $700 billion pie. I mean, if you're going to spend $700 billion dollars on banks and big companies, why not throw the money around to everyone?
As far as that goes, why give that much money to financial institutions in the first place? Oh yeah, so these wonderful institutions, who are failing because they have too many bad debts, can loan out even more money.
Great. Good idea. Give them more money to do what they have already proven to be failures at doing.
That's some top notch thinking there. Makes about as much sense as using dirt to wash your car.
As I understand it, many of these banks are failing because too many people have failed to keep up payments on their homes. OK, so instead of giving banks more money to make more loans, why not give regular people money to pay off their mortgages?
If people pay off their home loans, that still puts the money into the hands of the financial institutions, plus it takes care of the bad debts that supposedly caused the problem in the first place, and it frees up more money for these home owners to spend on other things which, in turn, would stimulate the rest of the economy, right?
Am I not right here? $700 billion dollars could buy a LOT of homes, you know? It would do more good for more people than just sticking a bunch of money into the hands of some bank that's already FAILED.
And as far as that goes, instead of pumping several billion into the auto industry, why not simply give a million people $30,000 each to spend on a new car? That totals out to $30 billion, not a bad number for our apparently rich government to toss around.
So why not? Why not do it that way? Why not give money to people instead of failed businesses?
Oh yeah, because that would be way ridiculous, completely stupid, and so NOT within the purpose of government!
Of course, neither is what they are doing now.
Oh I know, I know, I'm not an economist. I'm no financial expert. Who am I to say what is good for the economy? Who am I to say what big businesses and the federal government should do? I don't have a business degree. I'm not an elected official. I'm not in a position of power. I'm just a wanna be writer who drives a school bus. But you know what? I've never screwed up to the tune of $700 billion either.
Remember that when you pull taxes out of my paycheck to pay for this stinking mess, will you? Oh, and one more thing, after all the bailouts put the government another TRILLION dollars in debt, who's going to bail that out?
By: Joe Bingham
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