Tuesday, October 14, 2008

Time to Bloviate about the Economy


I was born in 1956 and my parents have only distant memories of the Great Depression when they were children. But what has happened recently is remarkable - not a real depression, something maybe like a recession but not yet, but nonetheless ... interesting. Let's go over the last month or so, when all the "bail-outs" occurred:
  • Bear Stern
  • Lehman
  • Merill Lynch
  • Freddie Mac
  • Fannie Mae
  • AIG
  • Washington Mutual
  • 700 Billion US Congress Bail-Out
  • 250 Billion Federal Reserve Bail-Out to Partly Nationalize Nine Banks
Impressive list, eh? I think I left a few out, including money used to shore up European bank trusts, maybe another bank or two, or to back some bank merger collateral. I can't say if it is good or bad, just that I am mystified by what is probably one of the largest transfers of wealth that I've ever witnessed.

I'm sure people will write books about it, when it's all said and done, with expert opinions, theories, insights, and the veil of sounding authentic. To the man on a little sandbar in South Texas, it sure sounds rather baffling right now.

But do you remember when this all started, and the bloggers got all over the Lehman bail-out, saying 85 billion should not be paid by the taxpayers, and doing so would be a socialistic, un-American thing to do; not only that, it would promote bad morals by rescuing a company that lost its butt, clear and simple. Free market, laisezz-faire economies envisioned by Ronald Reagan and most every American means personal responsibility. Government was supposed to be small and not intrusive. Gosh, now we have big government and some really big nationalized banks. And by the way, these nationalized banks and trusts are good for us! Been doing it since the days of George Washington!

Well I guess it beats working for a few bucks a day in the potato, rutabaga, and onion fields but gosh, that's an incomprehensible amount of moolah. That's a good question: if we didn't save this global banking community from their brand of wayward capitalism, would the economy be so bad we'd all have to become proverbial field workers?

I think the answer, as always, is "it ain't all that bad, Sam, but sorta."

4 comments:

Anonymous said...

HHHmmmm...and who wll bail me out, I wonder if I need it? I live with my decisions, my mistakes as most do. I won't expect a bail out.
Char in Littleton

Sam said...

Well said, Char. Miss ya. Still owe ya a Chinese dinner!

Well at least gas might get cheaper - some are buying gas for less than three bucks a gallon now. $2.29 in McAllen today, yippee!

Hope you can come down. Other than a slow-as-molasses season and some Dolly damage, it's the same ole place. That's because SPI is a lucky place. -sam

Joni said...

I love the victory garden post card!

It seems like I have become numb to the financial news. It is different than anything I have ever seen, but I will just hang in and wait for the other side - or the other shoe to drop.

Gas prices under $3. It is time to get myself moved - we are still around $3.50.

Enjoy Sandcastle Days and give my best to Lori and all the S.O.B's

Everett said...

In preparation for the disaster to come I have turned a very big piece of my land back into a garden for next year.Had to fence it to keep out the deer but they also will add to the larder stock! Am keeping mucho chickens and four little oinkers. Mostly I am going back to theway we lived off this land when I was a kid. Didn't have a lot of material stuff but didn't starve either, witness my girth. And I am NOT a loner in doing this out here. Quite a few younger families have seen the writing on the wall.