May 9, 2008 12:09PM
Cody’s Stimulus Package: Let the Investment Banks Go Bankrupt and Burn!
By Cody Willard
Well, well, well, here we’ve just pre-emptively spent darn near every bullet the government thinks its got in its arsenal to prop up this supposedly disastrous economy, yet AIG still has to admit to ridiculous losses and raise more than ten thousands bunches of a million dollars each.
Yeah, $12 billion is 12,000 million, you realize! Picture for a minute how stupid you’d feel if you lost $12,000 on stupid bets How about losing $1 million on a really obviously stupid bet like CDOs and Subprime crap? Now picture losing that $1 million 12,000 times! And you realize these same idiots are very same guys who your Democrats and Republicans are now bailing out. Sigh.
All this hurting the renter and the saver and giving money to speculators and landowners and Wall Streeters and bankers, all because idiot pawn Ben’s been convinced that the creative disruption that market forces always enact to keep the virtuous cycles of economics going would be a bad thing.
I still say, WHO THE HELL CARES if Wachovia, Lehman or most any other irresponsible, gambling financial entity goes under. Let ‘em burn! They got to keep their profits in the good times. Let ‘em eat their losses in the bad times. If Lehman goes away tomorrow, some other company that deserves its chance will step up in the vacuum to prosper.
Did you notice how devastating the Bear Stearns collapse was to you? It wasn’t in the slightest, was it? Yet, everybody tells you that if the stock had gone out down 99.9% to zero instead of just 97% to $10 a share that would have spelled doomsday for all of us! What a crock.
And all the while, RIMM, AAPL, JPM, URBN, QCOM, MCD, and so many other stocks are indeed near their all-time and/or 52 week highs. Ignore the macro picture and fight the Republican and Democrat powers that keep sneaking money out of your pockets and into their rich cronies and landowners.
The saddest part of all this endless central money moving is that it does nothing to stop the obvious economic forces that always play out on their own anyway. Did the Fed and government stop the 75% decline in the Nasdaq from 2000 to 2002? No, of course not. And they’re not stopping the housing depression either.
Yet you still vote for these guys who steal from you.
Comment by Tim
May 9th, 2008 at 1:27 pm
Well said Cody!!!!!!!!!!!!!
Thanks,
Tim
Comment by Mike
May 9th, 2008 at 2:51 pm
I sigh too. I, with a right-on-the-line median income of $52K, am still renting and still cannot (also afraid) to buy a median priced house since it is still far from being affordable. I also didn’t choose to be a subprime-fool to a few years back.
And I am telling you, and everyone, when comes November get out your vote and kick out all incumbents regardless of who they are.
These seemingly intelligent individuals are a group of morons when you put them together in the same room. Or maybe they are simply corrupt.
Comment by al m.
May 9th, 2008 at 4:50 pm
You tell’em Cody!
TGIF…I’m now sitting back ready to join you guys for “Happy Hour”
Cheers!
Comment by Pander
May 9th, 2008 at 11:51 pm
I agree, mostly, yes these companies need to be taught a lesson but the entire sector doesn’t have to pay for it. If we let all the financial institutions go under that are having problems it wouldn’t end up all peachy. If the financial sector fails, then the entire markets will collapse because all securities would be frozen and only the wealthy elite would have the means to survive. Not to say that the finance sector is in that much trouble at the moment, but it would be bad if a chain reaction started. Lets just hope these bailouts aren’t a repeat of Black Tuesday, which its very unlikely they are.
Comment by LaughingMan
May 12th, 2008 at 9:12 pm
Well, that’s a nice thought… we’d all love to stick it to “the man”. Fact is, you clearly know nothing about economics or the banking system (that, or more likely you’re pretending to be dumber than you are to create a certain image/appeal, similar to our current president). Letting even one bank like Bear Sterns go under with that toxic debt would have caused a chain of defaults that would have plunged us into a national depression and fierce global recession. The mistake was not bailing out the banks, but in allowing them to take on the toxic debt in the first place. They only thought about the next quarter’s bonus, with no concern or thought to the future the rest of us would have to deal with. Constraints on this behavior had once been in place, but were removed in the hopes of “stimulating the economy” (a red flag anytime you hear it, trust me). The bail outs are bad, and will result in runaway inflation unless Bernake and the rest of the economists figure out something brilliant, and soon.
In summation, quit pandering to what people want to hear and start talking straight “kid”. That, or get an economic education before opening your mouth in a public forum such as this.