20080929

Here's the thing, see....

It's not like the Depression. Household savings and checking accounts aren't the things at stake. No, the Depression and the Great Crash netted us the FDIC - which means your money at the bank is insured against runs and catastrophic losses. Insured. Yeah, you read that right.

So what the government is saying is that this Wall Street Bailout, this one that failed, is basically a reward for investors who gambled with other people's money (to reduce the risk of loss to themselves) and when they lost money and walked off, someone was left holding the bag, and it was about to be you and me. We were about to be asked to "insure" an industry that had no right to be in the first place, an industry that was created and allowed fortunes to be made by trading on risk like a commodity.

Ah yes...what are those famous words?

"Neither a borrower nor a lender be"

I can't wait to get out of debt.

1 comment:

Pandora said...

I could not care less about these banks or people that were too irresponsible to get a realistic mortgage that they could afford. It's not so much that I want the govt. to bail out these people & institutions because they knew better... the down side of NOT doing anything about it: WE suffer for it. I had an unrealized loss of 18% yesterday alone (& I have nothing to do with Mutual, AIG, Fannie, etc). Also, what about every person that has a 401K? Everyone that has a 401K is SOL if the govt. doesn't step in. Not to mention the unemployment rate is going to increase, so is the inflation (when the govt. does something about it). I think we should follow Sweden's example when they went thru this same fiasco.