I bet you know who that “someone” is. You and me . . . the American taxpayer. The latest bailout (and that is exactly what it is) stops the system as it was correcting for misguided or dishonest mistakes. It is so in keeping with the past decade’s or so – we don’t want anyone to feel bad – everyone’s a winner philosophy. Are we going to buy back the properties that foreign investors bought? Everyone bought these damaged mortgages as an investment, not in the community, not in a family but an investment in the money. Every investment carries a statement like this, “Not FDIC insured, no bank guarantee, may lose value. There is no assurance that any fund/stock/bond, etc. will make money. The prices and investment returns will fluctuate with changes in the market. When you sell, you may get less than what you paid. You can lose money investing in any fund/stock/bond, etc .”
It will not end the problem of Wall Street’s too cosy relationship with Washington, DC. It does not fix the accounting rules that are wrong. It does not fix the problem of loosie, goosie regulations and relaxed rules. It doesn’t differentiate between the greedy, the illegal or just the unlucky. More importantly, this will not end the problem in the housing market. The inventory is still there – just a new owner.
Everyone knew this problem was there. From lending money with 0 down to let short sellers get away with an actual crime. And all we have done is put off the problem – you can’t have a country that can legally carry a 11+ trillion dollar deficit. It won’t last. The house of cards will fall down.
Tags: bail out, wall street
