For the first time ever I am recommending not watching Bill Moyers this week. Not because the quality of the show is going down, it still remains top notch, but because I am now in a deep depression after hearing the true story on why we have these financial woes and what real economists (both candidates, Bernanke, Paulson, and anyone else trying to sell you something are excluded from this category by the way) say is in store for the future of America (short term and long term). I will spare you the details, go ahead, have a nice weekend, have fun, take a walk or hike, bake a cake, plant a tulip bulb, hug your loved ones. . . just don't watch Bill Moyers unless you want to be sad the rest of the week... maybe longer.
Update: Because I am so depressed (partially because my wonderful wife is away on business) I will not totally spare you the details.. here are some short quotes... Misery loves company...
GRETCHEN MORGENSON: The ugly thing about this is this is privatizing gains and socializing losses. So when things are going well, the managements make out, the shareholders make out, the counterparties are fine. All the private sector people do well. But when something goes wrong, when decisions are made that turn out to be bad decisions, the U.S. taxpayer has to take on the problem.
And there's something very wrong about that. Because all of those people that made all that money are running off here into the distance with the money, carrying it in their bags. And the United States taxpayer is on the hook.
KEVIN PHILLIPS: And I think what we're seeing with the actions of the Federal Reserve Board is the people who are the arsonists, the people who pumped it all up, who blew up the bubble are now racing to show up in firemen's hats and say, "We're gonna solve it. We're gonna take care of all this. Oh, and by the way, we're gonna keep pumping in the gasoline that we pumped in before that made a good flame." But, you know, nobody knows that.
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3 comments:
"privatizing gains and socializing losses" is the best way I've heard it put.
I sort of understand why this bailout has to happen. We might all be in a whole lot more trouble if these financial institutions fail (maybe?), but isn't it the job of the SEC to stop so many banks from merging and buying each other up that they become indispensable. There shouldn't be corporations that are so big that our country can't survive if they fail.
I agree with your depression Jack. The last few weeks are a clear indication that no-regulation reganomics do not work. Check out this economist Nouriel Roubini, he's been right on most of the predictions, but was considered a "dooms-day" columnist just a few months ago.
Don't tell anyone, but I just naked short sold myself.
One of my bosses is going to New York this week. My other boss told him to look upward when he is walking around downtown and watch for bankers. We all laughed at the joke, but very uneasily... very uneasily.
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