Does Anyone feel like Bailing

[tw]

Originally Posted by glatt

... if I look at the hit that it has taken and calculate my share of what this bailout will cost, the bailout is cheaper. Assuming it works.

Start with the bottom line. America's net worth has been so distorted with excessively low interest rates, tax cuts (that are really nothing more than future tax increases because spending cuts were not also implemented), and welfare to the rich. Economic forces are now taking revenge. Net worth of America must drop maybe somewhere between 20% and 40% so that the dollar numbers are corrected. So who takes the most pain?

Whether the government does a bailout or bankruptcy threats result in same corrections; is irrelevant in the big picture. We all pay either way. Americans must now pay for this stupidity for the next ten plus years by enriching the Chinese, Japanese, Europeans, etc. Time to avoid this stuff was obvious four and more years ago when the rich increased their wealth by (I no longer know this number) 100 times more while the average man's income dropped 2%. This had only happened once previously - just before the great depression. I am only reposting an obvious fact from history.

This we do know. With every pound more pain applied to top management, only then will future managers learn from history. Washington Mutual executives will get no golden parachute (hopefully). But people such as O'Neil (of Merrill Lynch) must be hounded in the courts, the press, and on the street for being the alpha example of bad people.

We have the economy we deserve because we got the "deregulation" we wanted of those who historically are among the least responsible - the financial industry. Stock brokers, bean counters, etc making a strong economy is always the myth. Now everyone must be hurt big time. No way around it. Americans must now pay for the party hangover whether part of the party or not. Question is only about which Americans *should* suffer most. 85% of all problems are directly traceable to top management. That says where pain should be greatest.

Did you invest in the people who make America great (companies that innovate and actually produce something), or did you invest in those who made big profits by lying? America’s product oriented companies are not suffering losses as large. Why are stock broker companies and mortgage hawkers in so much trouble? They are not experts. They are only salesman who successfully lie about being smart. NINJA – these experts even issued mortgages without asking the obvious, “No Job No Income Apparent”. Those who blindly listened to finance thinkers are now suffering most – and rightly so. Learn why bean counter types (spread sheet experts) are the least responsible thinkers.

However, quietly being heard is American automakers got $25billion from the government. Bankruptcy that would have fixed auto industry problems by removing bean counters (the worst being GMs) is being averted – a bad thing.