Sep 30 2008
Global Markets Can’t Bear the Tension, and That’s No Bull
A record drop of nearly 800 points one day, a huge rise of nearly 500 points the next. “Volatile” is too soft a word for jolts like that. And all because Wall Street wants handouts from taxpayers.
They throw a tantrum when the legislators balk, then dance on the trading floor when there’s a rumor the House may try again.
Nutz. And again, nutz.
This bailout fixes no fundamental flaws. And it’s the fundamental failures that got us here.
A number of the largest financial institutions in the world are gone, and the remainder are going through Cheyne-Stokes breathing, not long for this world.
Trundling in a crash cart covered in cash isn’t the answer. Life support isn’t supposed to cost more than society can afford. At this level there’s no Medicare, no insurance.
Sometimes you just have to know when to let go.
Congress needs to build, after careful consideration and massive input from other sources than the financials themselves (they’ve got plenty of that sort of begging, er, information), a soft-landing plan that corrects the glaring deficiencies this panic has uncovered in our financial industry:
- Under-regulation of new products
- Purposeful understating risks so the unqualified can still get loans
- Truly excessive compensation for the top few in these large firms
- Allowing institutions to become “too big to be allowed to fail”
Any plan to use tax money on this has to have a way for the taxpayer to “win” should the bailout work, rather than simply absorbing the risk with no chance of reward. That’s naked socialism, and we know that doesn’t work…
Seeya ‘Round the Ol’ Stock Ticker…
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