Decide what matters

[Bob]

In 2008, before Obama was elected I posted this, seems more relevant now than ever...some of us have been consistent about expressing our concerns of over-spending and government growth under R and D administrations. The following is not about Obama, it is about out of control government and government spending:

“For every thousand that strike at the leaves of iniquity there is one that strikes at its root.”

That is the sense I have with much that is going lately. As you guys know, I am right of center, but prescribing all blame to Dems, and all cures to Repubs is stupid, and wrong -- in fact this strong identification to one party or another is part of why there is such a lack of trust out there, with all of its unintended consequences. The bickering is as stupid as assigning blame to Barney Frank or George Bush for steering all of us into the iceberg. Either way the economy is going to reset, much like what happened to the USSR in the early 1990’s.

So, the real question is when this happens -- do we tear each other to shreads, or decide that the real enemy are those in government who care more about power than those they should be serving? Remember how we felt on 9/12 -- yes, there was a sick feeling, and some fear, but I miss that feeling like were going to stick together no matter what.

People keep talking about stock losses, but I don’t think that is the real story – the real story (that is coming like the wave after an earthquake) is the lack of money that is needed by businesses to cover payrolls, which of course will mean massive layoffs. The real story is that food prices will be shooting up (much more than in the past year.) The real story is the march to Socialism, and the adding of fuel to the economic fire – each step we have taken has been wrong – lowering interest rates, just further deflates the dollar. Who the hell do we bail out next? California can go to hell – they need to cut their expenses, but instead they want a bailout? GM, Airlines, who else is too big to fail? So every industry and state government that was irresponsible should be bailed out by those who are lived within their means? Each time we attempt to put off collective payment, we inflate the problem.

So don’t talk to me about loosing money in your 401K – are you kidding?

There are some silver linings to economic doomsday, one might be a recalibrating of values – what really matters? Your various titles, or your family? Your pathetic party --or your country? Your 401K, or keeping your job? Your flat-panel TV, or the ability to feed your family?

[Rohirrim]

I don't have a problem with bailing out the banks. If you don't create some liquidity you don't stand a chance of stopping the downward spiral. But bailing out AIG and investment companies was a huge mistake. Creating the idea that any company is "too big to fail" is like committing long term economic hari kari. It reminds me of that forest policy we had for years where we put out all fires. We discovered that forests need fires. That's how they get rid of the weak trees and the rotting undergrowth and the overgrown ground cover. The strong trees survive. But after a few decades of our misguided policy, when the fires did hit, they were so huge that they took out everything. Unfortunately, I don't see how we can backtrack on all the excesses that have been taking place in Washington and Wall Street for the last fifty years, at least without tearing the entire structure down.

[frerottenextelway]

AIG isn't that simple.

I work for a mid to large size regional insurance company in the east. Our finances are rated AAA+, and have been for a long time. Our company, like many other companies, purchase reinsurance - which is essentially spreading out of the risk in the event of a major catastrophe. AIG is the biggest seller of that, because they were the largest insurer.

The point is, if AIG went under it's not just going to bring AIG down with it, it's going to bring down entire industries - even people who didn't touch the gambling they were involved in.

[Rohirrim]

Originally Posted by frerottenextelway

AIG isn't that simple.

I work for a mid to large size regional insurance company in the east. Our finances are rated AAA+, and have been for a long time. Our company, like many other companies, purchase reinsurance - which is essentially spreading out of the risk in the event of a major catastrophe. AIG is the biggest seller of that, because they were the largest insurer.

The point is, if AIG went under it's not just going to bring AIG down with it, it's going to bring down entire industries - even people who didn't touch the gambling they were involved in.

Then they should have put the entire friggin company into receivership and kept on the people who actually knew what the hell was happening to sell the whole damn thing piece by piece. The idea that the people who committed these crimes walk away, not only intact, but with bonuses is insane. It's like saying, "Well, Madoff could have walked if only his scheme had been much bigger."

[frerottenextelway]

Originally Posted by Rohirrim

Then they should have put the entire friggin company into receivership and kept on the people who actually knew what the hell was happening to sell the whole damn thing piece by piece. The idea that the people who committed these crimes walk away, not only intact, but with bonuses is insane. It's like saying, "Well, Madoff could have walked if only his scheme had been much bigger."

Yeah, they should've handled it better - I'm just saying it's not as simple as letting them fail. There would've been massive unintentional consequences.

[NUB]

Originally Posted by Bob

Either way the economy is going to reset, much like what happened to the USSR in the early 1990’s.

Ahem...

http://en.wikipedia.org/wiki/Busines...sian_Oligarchs

[Meck77]

I wouldn't say the economy "resets" as much as the dollar will.