Tuesday, September 30, 2008

Since We Are Taking A Second Swing

(or third) at getting an emergency bail out in place and we have a couple a days to consider our options, I would like to add my voice to the mix.

I am one of those who is disgusted by the thought of bailing out this industry but I think we have little choice but to take some action. As I told a friend; It is like having a advanced case of gangrene in your leg. You can end up with two very unpleasant options, cut off the leg or die.

So it looks like we have to find a way to cut off the leg, but it doesn't mean we should not try to save as much as we can. So what is the smart way to fix this mess, but save as much as we can?

My first thought is; Why are we giving $700,000,000,000.00 to the same people who screwed up in the first place? Maybe the new bill should address this in some manner. It is possible to let the bad firms fail, but protect the overall credit markets? Keeping bad businesses open and bad business-persons in place is not smart and prior to giving money away this has to be looked at.

My second thought is; Why are we expecting oversight from the same people who let this happen on their watch? Maybe a few new regulators would not be a bad idea. Lets start with the man who's initial thought was: Yall, just give me $700,000,000,000.00 and bugger off, while I decide what to do with it. Anyone who thinks this is a rational reaction to a situation that occurred on his watch is not thinking clearly. This is another example of the Republican style of regulation and oversight biting middle America on the ass, and can not be allowed to continue.

My third thought is; Why are we expecting a better outcome after the bail-out when we have not changed the way the rules of the game are written. How about some real regulation, starting with a return to the rules in place in the mid 90s. Otherwise I think the end result is throwing good money after bad. A business's job it to make money, in any way it can, no matter what. The only boundaries that exist for them are the ones that society forces on them by rules and then enforcing the rules. For the last 30 years we have been removing the rules and over the last 7 years the Bush administration have simply refused to enforce the few rules left in place. This has to change or our efforts will make no long term difference.

These are not detailed solutions, simply a starting place on issues to address prior to giving the folks who paid them self's billions of dollars a year for losing trillions of dollars a year, another $700,000,000,000.00 to play with.


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