So WaMU failed - the largest bank failure in the US to date. Shiver. Well, I guess it didn't really fail because Super Fed stepped in for the rescue. I don't have a full understanding of the dynamic of our financial markets but I am so darned opposed to all these bailouts. May sound hypocritical since hubby's company was saved by a bailout, but it all seems superficial to me. Maybe they should have let AIG fail. The Fed is taking unprecedented steps to keep our economy from sliding into a recession (I really think they are fearing something far worse than this, but in keeping with Reagan's" consumer's perception is king" rule, they won't say it). Anyone else worried that they really don't know the consequences of what they are doing? What do you think? You for or against the bailouts??
WSJ.com - Futures Fall as Bailout Jitters Risehttp://www.msplinks.com/MDFodHRwOi8vb25saW5lLndzai5jb20vYXJ0aWNsZS9TQjEyMjI0MjU1MjEzNDY3ODY1My5odG1s
2 comments:
Against! But like you, I don't fully, or even a little bit, understand all that's involved here. But I don't like it. Shawn and I started a business 3 years ago and due to economic changes and other variables we are struggling...up to our eyeballs. No one's bailing us out. We do not live above our means, our house is just shy of 1400 sq ft and we have 5 people living here. We're content. Not looking for more. Just wanting to get by and get out of debt.
Philosophically, i think everyone will agree that US citizens are over leveraged which means that banks have over loaned. It is fiscally impossible for a bank to loan out personal loans, car loans, home mortgages, home 'equity' loans, and credit card revolving limits all to the same hypothetical person, meanwhile depending on deposits from other US citizens who are equally as leveraged as the first hypothetical person.
The money simply is not in savings accounts. Every dime of cash flow is allocated to some sort of 'bill'. This is disasterous, preposterous and hilarious (i'm out of -ous words). W/out the government bail out, banks will not be able to loan any more $$ because their capital is already stretched to collapse (WaMu, Wachovia, who is next?).
So, either we will watch the house of cards fall and deal w/ the very real and very painful consequences, or we will get bailed out while promising never to do it again. Anyone w/ a kid is familiar w/ this cycle.
I'm no fan of pain, however, Martin Luther once noted in Psalm 119 (i think) where it was said, 'before I was afflicted, i wondered from your instruction. Now that I am struck, I have learned Your law.'
As Christians we all need to look very closely at what our culture does and ask the Holy Spirit guide us in how we should be in the world but not of the world. I pray that this leaps out of hearts of faith everywhere, including my own.
angello
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