Thursday, November 13, 2008

More Bailout stuff

I started this blog with the intent of writing about school but the world keeps getting in the way. 

First, did you see that about AmEx yesterday?  The Fed fast-tracked their bank application specifically so they could take part in the bailout.  They don't have mortgages!  That $700 billion is because of mortgages...that's what we were told.  And the bailout is extending to student loans, cars...This is not right.  All I can think to do is write to Congress.  

And then, we have this whole "too big to fail" mentality.  I heard someone say on the radio (I think it might have been on FoxNews Sunday) that Obama would be good for "big business."  This is a fundamental misunderstanding of how the economic engine of the United States works, and it's dangerously like the FDR's administration view of a three-legged stool of the economy.  They looked at the US as having big government, big business, and big labor. What's missing?  Right.  The little guy.  And it drove us deeper into the Depression even as the rest of the world was recovering.  (See Amity Shlaes' The Forgotten Man for much, much more.)

Yes, I'm speaking a little out of self-interest.  DH is self-employed, and over the years has grown his company to employ a bunch of people.  This is how wealth is generated in this country.  And as his customers fail, because they are too little to save, his unsecured loans (in the form of items shipped with payment terms) to the customers become bad loans.  But we're too little, too.  Too little to save, but not too little to pay for the bailout of the big guys.  I can't believe we're still dealing with a Republican administration (is it really RINO?).  And I shudder to think what we'll be dealing with in a year.

1 comment:

ZipperTPartee said...

I just posted on your earlier bailout comment. The American people are bailing out themselves and yes that is as riduculous as it sounds. Government doesn't have any money unless they take it from us. Businesses pass their costs onto consumers, higher taxes for corporations are paid by consumers also.