The New World Order – Will socialism will fix the problem?
The Economic Meltdown and the Economic Recovery – Is now the time where we have to trust the federal government to get us out of this situation? Or is it more like “there’s no one else out there to trust” and we have no other options.
The great thing about blogging is that we get to write down things and publish them so that others who’re having thoughts on the subject might have a place to share their ideas & their frustrations. Maybe we can discuss this and find some comfort knowing that they’re others out there that share common opinion. Maybe not…let’s see.
What went wrong?
What a ridiculously complex puzzle. But before we hand this over to the Harvard Business school to debate, there are some of us who need to vent while others need to learn. Let’s start with who’s culpable?
How about we start the blame with those who got into mortgage contracts and later defaulted on their obligations. Can you just blame those who didn’t pay their mortgage and say they’re to blame? Not exactly, since they definitely shouldn’t have had a mortgage in the first place. But that doesn’t mean the federal government is supposed to prop them up and keep them in that house that they couldn’t afford to begin with. While this smells like a new wave of low income housing subsidized by the federal government, which lately seems to be subsidized by countries like China and our American future generations, it just doesn’t seem right. But what else can be done?
What about Legislation?
Can legislation fix a free market economy…it rarely does. Or maybe we shouldn’t be a free market economy. Not that I’m not looking to sue anybody, but I’ll bet there’s a whole bunch of people out there that should be sued (after they get out of jail). I just need someone to put them in jail first!
Can anyone figure out who’s accountable, or was this just one big ponzi scheme where everyone was out for a joyride and the car just crashed? Those who survived the crash get to walk away from the scene saying “I wasn’t driving but I did go along for the ride.” I see legislators and former fed chairmen on TV, and they act like it was all someone else’s doing. And where was the SEC? Again, where was the SEC? Looks like there was fraud being committed all over the place.
So, what value did Sarbanes Oxley have on the government agencies and the corporate overseers? Barney Frank, Christopher Dodd, do they really believe the stuff that comes out of their mouths? Didn’t we learn anything from the bank bailout scandal and Enron?
What about Greenspan? Some defend him. Others denounce him. He certainly did lead the rally to bring interest rates to the lowest level I thought I’d ever see (until now). Was anyone looking for a zero fed funds rate anyway? Not me. So did he just put the loaded gun into the hands of the mortgage underwriters while all the other agencies sat back and said “It’s America-Have at it” I guess.
I’ve spent over a decade working for investment banks that today seem to be on life support. While some of the CEO’s don’t seem to understand the public perception of their perceived wrong-doings and bad behavior, I can’t help realizing that our global banking systems will be forever changed. So what, “Hi I’m Morgan Stanley and I’m now a holding company.” I just don’t want to wait to hear the solutions come out of some Harvard Business School case study! Isn’t that where they’re all from?
And why can’t the ratings agencies be held accountable? Moody’s Investor Service, Standard & Poors, Fitch and the like. They were all in it together. Independent research and opinion? Who’s looking out for the investor? No one. They’re all part of the problem. What happened to that bumper sticker “Question Authority”? Not that I’m looking for a “bumper sticker” solution.
Looks like more of the “fox watching the hen house”. We’ve all heard the term “Wall Street infected Main Street”. Is this really true, or did those who lived on those leveraged mortgages on Main Street, treating their houses like ATMs, inject so much poison into the financial system that the derivatives market caused a catastrophic super-leveraged tsunami that will be pounding on us for decades just because they agreed to borrow money and defaulted? How bout that term – a “super leveraged tsunami”. Chicken or the egg…who cares. The salmonella is EVERYWHERE!
So if Fuld, Cayne, or Thain and the rest of the super leveraged hedge fund guru’s were the chicken (broiled chicken for that matter), does that make Dodd and Frank the egg? What a mess. Can’t we just bring back public hangings and get it over with? At least it’d be a start (maybe a good one).
Is it best to just let the free market economy correct itself or will an infusion and intrusion of the federal government simply prolong the agony or shift economic variables to the federal government.
“Dear President Obama, America has this problem and we need your help.” Maybe we’re all writing this letter in our minds, but are you doing this just because you have nowhere else to turn? Or maybe we just need to look at ourselves and blame ourselves? I want to say no, it’s not me, but then again, I grew up seeing New York City going down the tubes in the 70’s and blamed society for it’s shortcomings. But I then saw someone like Rudy come and and restore order (so I have seen it done).
Maybe I’ve just lost faith….what options do we have?
Where do we reengineer? For cryin’ out loud, I’m in the reengineering business and I can’t even begin to say where to begin. But I do see that there are tremendous opportunities and things will have to be reengineered in whatever economy we end up with. Will government have to reengineer government? Will government have to reengineer business? Regulation….what regulation? Just how far is the government going to go this time. Regulation can be good, but is it going to swing to the extreme. Probably. Give a politician a chance to legislate and watch them get excited (they are lawyers remember).
We need help. Someone please help. Don’t give us a poison pill. I love America too much.
Post your thoughts. Click the Add Comment below and “have at it”.