I've been watching the rollercoaster ride, watching, like everyone else the stock markets not so much fall but plummet. The US Federal Bailout didn't pass. Shock (not). There is just so much finger pointing going on. Politicians are such asses.
Blame. There is quite a lot to spread around.
I found an interesting article that talks about the sub prime market and the causes for the collapse. Believe it or not it is not the poor people's fault, but just old fashioned greed.
The question is:
Rhetoric aside, the argument turns on a simple question: In the current mortgage meltdown, did lenders approve bad loans to comply with CRA, or to make money?
And the answer:
Law didn't make them lend. The profit motive did.
So why must I, as a taxpayer, give Wall Street a nice big blank check? I understand that we need to do something to keep the infrastructure - especially the credit infrastructure stable- so that individuals and businesses can continue to do business by tapping into the credit markets. And yes, it is a bad thing when your bank goes belly up. But why must we invest in something which really doesn't give us a good rate of return? I want a return on my investment, and I want some oversight please. If you invest in a high risk, high yield venture, why then when things go south do you get a bail out? Why didn't companies diversify their risks?
I guess I just don't get it.
Oh and by the way - I am singularly unimpressed with our Political Leadership. Don't give me hysteria - give me logical reasons why a bailout should be supported by the taxpayer. And if not, can't you guys come up with some alternatives other than "give me a blank check"?!